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LAND TITLES REVIEWER 2C 2019 (PART 2)

SEC 70. Adverse claim. Whoever claims any part or interest in registered land (1) Registration of adverse claim
adverse to the registered owner, arising subsequent to the date of the original  Sec. 70 is divided into two parts:
registration, may, if no other provision is made in this Decree for registering the o 1. Petition of the party who claims any part or interest in registered
same, make a statement in writing setting forth fully his alleged right or interest, land, arising subsequent to the date of the original registration
and how or under whom acquired, a reference to the number of the certificate of  ministerial function of the Register of Deeds absent any defect
title of the registered owner, the name of the registered owner, and a description of on the fact of the instrument
the land in which the right or interest is claimed. o 2. Petition filed in court by a party in interest for the cancellation of the
adverse claim upon a showing that the same is invalid
The statement shall be signed and sworn to, and shall state the adverse claimant's  the notice of adverse claim is sufficient in law and drawn up in
residence, and a place at which all notices may be served upon him. This statement accordance with the existing requirements, it becomes the
shall be entitled to registration as an adverse claim on the certificate of title. The ministerial duty of the Register of Deeds to register the
adverse claim shall be effective for a period of thirty days from the date of instrument w/o unnecessary delay
registration. After the lapse of said period, the annotation of adverse claim may be o Examples of registration:
canceled upon filing of a verified petition therefor by the party in interest: Provided,  Lease over a parcel of lan for a 10-year period which could not
however, that after cancellation, no second adverse claim based on the same ground be registered because the owner’s duplicate of the title was not
shall be registered by the same claimant. surrendered, could be registered as an adverse claim and the
owner could be compelled to surrender the owner’s duplicate so
Before the lapse of thirty days aforesaid, any party in interest may file a petition in that the adverse claim could be annotated thereon
the Court of First Instance where the land is situated for the cancellation of the  The claim of a person that she has hereditary rights in the
adverse claim, and the court shall grant a speedy hearing upon the question of the land fraudelently registered in her sister’s name, because the
validity of such adverse claim, and shall render judgment as may be just and land belonged to their mother whose estate is pending
equitable. If the adverse claim is adjudged to be invalid, the registration thereof settlement in a special proceeding, is registrable as an adverse
shall be ordered canceled. If, in any case, the court, after notice and hearing, shall claim
find that the adverse claim thus registered was frivolous, it may fine the claimant in
an amount not less than one thousand pesos nor more than five thousand pesos, in (2) Incidents which may not be registered as adverse claim
its discretion. Before the lapse of thirty days, the claimant may withdraw his adverse  Adverse claim of ownership over a parcel of land registered under the Torrens
claim by filing with the Register of Deeds a sworn petition to that effect. system based on prescription and adverse possession cannot be registered by the
Register of Deeds
o Refer to Sec. 47
1. Adverse claim, nature and purpose
 When there is a already a notice of lis pendens for the purpose of alerting anyone
 Sec. 70 of PD 1529 governs adverse claim
who might wish to buy the land
 Adverse claim : a statement in writing setting forth a subsequent right or
o Notice of lis pendens and adverse claim serve the same purpose
interest claimed involving the property, adverse to the registered owner
 A vendee of a parcel of land may register the deed of sale in his favor but such sale
 A claim based on a future right does not ripen into an adverse claim, nor can
many not be annotated on the vendor’s title as an adverse claim
a right still subject to negotiations be enforced against a title holder or
o Refer to Sec. 44
against one who has a legitimate title to the property based on possession,
 The annotation of an adverse claim to forestall the transfer of the property to the
ownership, lien or any valid deed of transfer
vendee cannot be done where the deed of sale in favor of the latter was already
 Annotation of an adverse claim over registered land under Sec. 70 requires a
registered.
claim on the title of the disputed land
o It is a measure designed to protect the interest of a person over a
(3) Recorded adverse claim is constructive notice of an existing claim over the
piece of real property where the registration of such interest or
property
right is not otherwise provided for by PD 1529. It is a notice to third
 Ching v. Enrile : the property in dispute was first sold to petitioners who did not
persons that any transaction regarding the disputed land is subject
register the sale but executed tan affidavit of adverse claim which was recorded
to the outcome of the dispute.
and annotated at the back of the TCT. The Court stated that adverse claim,
o It must be shown that there is no other provision in the law for the
coupled with the fact of possession, are circumstances which should have put
registration of the claimant’s alleged right in the property.
respondents on constructive notice that the property being offered to them had
 Ex. If the basis of the adverse claim is a perfected contract
already been sold to anoter. Knowledge of an unregistered sale is equivalent to
of sale, it is governed by Sec. 51 & 52, not Sec. 70. Filing
registration
such claim under Sec. 70 is ineffective for the purpose of
protecting the vendee’s right since it does not have the
2. Registration of an adverse claim
effect of a conveyance.
 Formal requirements of an adverse claim (WSR)
o A notice of adverse claim does not constitute an effective
1. State the following in writing : (RIHDN)
interruption of possession.
a. Alleged right or interest
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b. How and under whom such alleged right or information is acquired reasonable time, the Register of Deeds shall report the matter to the court, and it
c. Description of the land in which the right or interest is claimed shall, after notice, enter an order to the owner, to produce his certificate at a time
d. Number of the certificate of title and place named therein, and may enforce the order by suitable process.
2. Statement must be signed and sworn to before a notary public or other officer
authorized to administer oath
1. Court may compel surrender of certificate of title as an incident in the main
3. Claimant should state his residence or the place to which all notices may be
case
served upon him
 Register of Deeds is authorized to require the registered owner to produce the
 Non-compliance with the above requisites renders the adverse claim non-
owner’s duplicate certificate in order that an attachment or other lien in the
registrable and ineffective
nature of involuntary dealing may be annotated thereon
 If the owner neglects or refuses to comply within a reasonable time, Register of
3. Registration court may determine the validity of adverse claim
Deeds shall reporty such fact to the proper RTC
 Validity may only be determined by the court upon petition by an interested party,
o RTC will direct the owner to produce his certificate at a time and place
in which event, the court shall order the immediate hearing therof and make the
specified in its order
proper adjudication as justie and equity may warrant
 In an action for specific performance with damages based on a document of sale, a
 It is only when such claim is found unmeritorious that the registration of the
motion may be filed by the purchaser for the issuance of an order to compel the
adverse claim may be cancelled
holder of the duplicate certificate of title to surrender the same to the Register of
 No necessity for a prior judicial determination of the validity of an adverse claim
Deeds
for it to be considered a flaw in vendor’s title
o This can be filed with an action under Sec. 107
4. Adverse claim not ipso facto cancelled after 30 days hearing necessary
2. Mortgage lien follows property mortgaged
 The cancellation of the adverse claim is still necessary to render it ineffective,
 Any lien annotated on the previous certificates of title which should subsist should
otherwise, the inscription will remain annotated and shall continue a lien upon
be incorporated in or carried over to the new transfer certificates of title
the property.
 Pursuant to Art. 2126 of the Civil Code — the mortgage directly and immediately
 The limitation on the period of effectivity is immaterial in determining the validity
subjects the property, whoever the possesor may be, to the fulfillment of the
or invalidity of an adverse claim which is the principal issue to be decided by the
obligation for whose security it was constituted.
court.
 A right in rem — a lien on the property whoever its owner may be
 There must be a court hearing for cancelling the adverse claim
 All subsequent purchasers must respect the mortgage whether the transfer to
o To afford the adverse claimant an opportunity to be heard, providing a
them be with or without the consent of the mortgagee, for such mortgage until
venue where the propriety of his claimed interest can be established or
discharged follows the property.
revoked

5. Purchaser not bound by any lien not entered in the certificate of title SEC. 72. Dissolution, etc. of attachments, etc. Attachments and liens of every
 A person dealing with registered land may safely rely upon the correctness of the description upon registered land shall be continued, reduced, discharged and
certificate of title issued therefor dissolved by any method sufficient in law, and to give effect to the continuance,
reduction, discharge or dissolution thereof the certificate or other instrument for
6. Adverse claim registered after annotation of mortgage does not affect the rights that purpose shall be registered with the Register of Deeds.
of the mortgage
 A foreclosure retroacts to the date of registration of the mortgage SEC 73. Registration of orders of court, etc. If an attachment is continued, reduced,
o If the adverse claim is registered only after the annotation of the dissolved, or otherwise affected by an order, decision or judgment of the court
mortgage at the back of the certificate of title, the adverse claim could where the action or proceedings in which said attachment was made is pending or
not effect the rights of the mortgagee by an order of a court having jurisdiction thereof, a certificate of the entry of such
o The fact that the foreclosure of the mortgage and the consequent public order, decision or judgment from the clerk of court or the judge by which such
auction sale have been effected long after the annotation of the adverse decision, order or judgment has been rendered and under the seal of the court, shall
claim be entitled to be registered upon presentation to the Register of Deeds.

SEC 71. Surrender of certificate in involuntary dealings. If an attachment or other 1. Dissolution of attachments or liens and registration thereof
lien in the nature of involuntary dealing in registered land is registered, and the  Where an attachment or any other lien is maintained, or discharged or dissolved
duplicate certificate is not presented at the time of registration, the Register of by any method provided by law, the certificate or instrument for the purpose shall
Deeds shall, within thirty-six hours thereafter, send notice by mail to the registered be registered to give effect thereof
owner, stating that such paper has been registered, and requesting him to send or  If the attachement or lien is maintained, discharged or dissolved by order of the
produce his duplicate certificate so that a memorandum of the attachment or other court, a certificate of the Clerk of Court shall be registered
lien may be made thereon. If the owner neglects or refuses to comply within a

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 The requirements of registering the order of the court with Register of Deeds in Sec. 75 Application for new certificate upon expiration of redemption period—upon
involuntary dealings affecting registered property is to notify third parties who the expiration of the time, if any, allowed by law for redemption after registered
may be affected in their dealings land has been sold on execution taken or sold for enforcement of a lien of any
 The Register of Deeds may properly deny the inscription of an order of attachment description, except a mortgage lien, the purchaser at such sale or anyone claiming
or levy of execution where the title to the property is not in the name of the under him may petition the court for the entry of a new certificate of title to him.
judgment debtor but of another person, and no evidence has been submitted that
he has any interest in the property Before the entry of a new certificate of title, the registered owner nay pursue all
legal and equitable remedies to impeach or annul such proceedings.
SEC. 74. Enforcement of liens on registered land. Whenever registered land is solved
on execution, or taken or sold for taxes or for any assessment or to enforce a lien of Entry of new certificate
any character, or for any costs and charges incident to such liens, any execution or  In case registered land which has been sold or execution for the enforcement of
copy of execution, any officer's return, or any deed, demand, certificate, or affidavit, any lien, except a mortgage lien, has not been redeemed within the period allowed
or other instrument made in the course of the proceedings to enforce such liens and by law, the purchaser at such sale or anyone claiming under him may petition the
required by law to be recorded, shall be filed with the Register of Deeds of the court for the issuance of a new one to him.
province or city where the land lies and registered in the registration book, and a
memorandum made upon the proper certificate of title in each case as lien or
Sec. 76 Notice of lis pendens. No action to recover possession of real estate, or to
encumbrance.
quiet title thereto, or to remove clouds upon the title thereof, or for partition, or
other proceedings of any kind in court directly affecting the title to land or the use or
Registration of deeds relating to execution and tax delinquency sales. occupation thereof or the buildings thereon, and no judgment, and no proceeding to
vacate or reverse any judgment, shall have any effect upon registered land as
 Whenever registered land is sold on execution, or taken or sod for taxes or for any against persons other than the parties thereto, unless a memorandum or notice
assessment or to enforce a lien of any character, or any costs to such lien, any stating the institution of such action or proceeding and the court wherein the same
execution or any other instrument made in the course of the proceedings to enforce is pending, as well as the date of the institution thereof, together with a reference to
such liens shall be filed with the Register of Deeds. the number of the certificate of title, and an adequate description of the land
 The following incidents on registered land in the nature of involuntary dealings affected and the registered owner thereof, shall have been filed and registered.
shall be registered to be effective:
o Continuance, dissolution, or discharge of of attachments
Nature of lis pendens
o Orders or decisions of the courts
o Deed of Sale, officer’s return, order of execution and other instruments
 Literally means “pending suit”
 The notice of lis pendens is an announcement to the whole world that a particular
 The doctrine of lis pendens refers to the power or control which the court acquires
real property is in litigation
over property involved in suit, pending the continuance of the action, and until
 Once a notice of lis pendens has been duly registered, any cancellation or issuance
final judgment.
of title over the land involved as well as any subsequent transaction involving
 Purpose of lis pendens
such land would have to be subject to the outcome of the suit.
o To protect the rights of the party causing the registration of the lis
 Effects of the filing of lis pendens
pendens
o Keeps the subject matter of litigation within the power of the court until
o To advise third persons who purchase or contract on the subject property
final judgment
that they do so at their own peril and subject to the result of the pending
o Binds a purchaser of the land subject to litigation to the judgment or
litigation
decree that will be promulgated thereon whether such purchaser is a
 A notice of lis pendens is only valid and effective when it affects title over right of
bona fide purchaser or not
possession of a real property, or the use or occupation of a real property.
o Does not create a non-existent right or lien
 The purpose of lis pendens is to keep the subject matter withing the power of the
 The purpose of lis pendens is to keep the subject property within the power of the
court, otherwise, by successive alienations pending litigation, its judgment decree
court until final judgment.
shall be rendered abortive and impossible of execution.
 In case registered land which has been sold on execution for the enforcement of
 A notice of lis pendens neither affects the merits of the case nor creates a right or
any lien, except mortgage, has not been redeemed within the period allowed by
lien. It serves to protect the real rights of the registrant while the case involving
law, the purchaser at such sale or anyone claiming under him may petition the
such rights is pending litigation.
court for a new certificate of title.
 While the notice of lis pendens remains in a certificate of title, the registrant could
rest secure that he would not lose the property or any part of it pending litigation.
Tax delinquency of sale requires personal notice to to tax-payer
 This is an essential and indispensable requirement, non-fulfillment of which
vitiates the sale.

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LAND TITLES REVIEWER 2C 2019 (PART 2)

Annotation of lis pendens o Action for partition


o Any other proceeding of any kind in court directly affecting the title to
Elements: the land or the use or occupation thereof or the buildings thereon
1. The property must be of such character as to be subject to the rule
2. The court must have jurisdiction both over the person and the res  Lis pendens is not appropriate in the following cases
3. The property or res involved must be sufficiently described in the pleadings o Preliminary attachments
4. The applicant must assert a claim of possession or title over the subject property in o Proceedings for the probate of wills
order to give due course to his application. o Levies on execution
o Proceedings for administration of the estate of deceased persons
The following may file an application of lis pendens o Proceedings in which the only object is the recovery of a monetary
 The plaintiff, at the time of the filing of the complaint judgment
 The defendant, at the time of the filing of his answer
Contents of the notice of lis pendens
Effect of the notice  From Section 14, Rule 13 of the Rules of Court and Section 76 PD 1529, it is clear
 It keeps the subject matter of the litigation within the power of the court until that such notice is proper only in
entry of final judgment to prevent the defeat of the final judgment by successive o A statement of the institution of an action or proceeding
alienations o The court where the same is pending
 It binds the purchaser, bona fide or not, of the land subject of the litigation to the o The date of its execution
judgment or decree of the court o A reference number on the certificate of title of the land
o An adequate description of the land affected and its registered owner
Notice is only incident in the main cause; merits thereof unaffected
 Notice is only incidental to a main action, it does not affect the merits thereof Principle of primus tempore, potior jure, effect of lis pendens
 It is intended to merely advise or warn all people who deal with the property so  Primus tempore, potior jure = “first in time, stronger in right”
that they deal with it in their own peril.  Important in double sales
 The cancellation of such notice is therefore, also a mere incident in the action, and  Must be in good faith, without knowledge of any defect in the title
may be ordered by the Court  In San Lorenzo Development Corporation v. Court of Appeals, the Court held that
 Its continuance or cancellation has no effect on the merits of the action the registration of the sale after the annotation of the notice did not obliterate the
effects of delivery and possession of a possessor in good faith. However, San
Notice need not be annotated on the owner’s copy Lorenzo was in bad faith because it acquired the property after it had acquired
 Annotation of a notice of lis pendens at the back of the original copy of the knowledge of Babasanta’s claim on the same property. Registration was done in
certificate of title on file with the Registry of Deeds is sufficient to contribute bad faith and did not confer any rights
constructive notice to persons dealing with the property
Carry-over notice on subsequent titles
Notice of lis pendens negates good faith  In case of subsequent sales or transfers, the Register of Deeds is duty bound to
 One who deals with property subject of a notice of lis pendens cannot invoke the carry over the notice of lis pendens on all titles to be issued. Otherwise, if he
right of a purchaser in good faith—neither can he acquire a better right of a cancels any notice of lis pendens in violation of his duty, he may be held civilly and
purchaser in good faith. even criminally liable for any prejudice caused to third persons.
 Third persons should examine the file in the Registry of Deeds, and not merely the  However, where the notice of lis pendens is inscribed long after the title has
owner’s copy thereof become indefeasible, the inscription becomes irrelevant.
 A transferee pending litigation stands at exactly the same shoes as the transferor  Where oppositors in a land registration case caused notice of lis pendens to be
and is bound by any judgment or decree which may be rendered by the court inscribed pending appeal, such inscription keeps the whole land within the power
of the court until its termination.
Lis pendens not a a lien or encumbrance  Transferees of title of a land subject to lis pendens is bound by the judgment of the
 It is a mere notice to prospective buyers of certain property that said property is court.
under litigation
 It imposes no obligation on the owner, but on the prospective buyer Sec. 77 Cancellation of lis pendens. Before final judgment, a notice of lis pendens
may be canceled upon order of the court, after proper showing that the notice is for
Notice of lis pendens, when appropriate; when not proper the purpose of molesting the adverse party, or that it is not necessary to protect the
rights of the party who caused it to be registered. It may also be canceled by the
 Lis pendens is appropriate in the following cases Register of Deeds upon verified petition of the party who caused the registration
o Action to recover possession of real estate thereof.
o Action to quiet title
o Action to remove the clouds thereon
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1. Cancellation of lis pendens canceled, the court shall, on application and after notice, enter an order to
 GR: Notice of lis pendens which has been filed in a proper case cannot be cancelled the owner to produce his certificate at the time and place designated, and
while the action is pending and undetermined may enforce the order by suitable process.
 E: In cases expressly provided for by statue
o It has been held that a court has the inherent power in the absence of
statute to cancel a lis pendens in a proper case Section 80. Execution of deed by virtue of judgment. Every court rendering
 Before final judgment, the notice of lis pendens may be cancelled: judgment in favor of the plaintiff affecting registered land shall, upon
(a) Upon order of the court petition of said plaintiff, order and parties before it to execute for
 After proper showing that the notice is for the purpose of molesting registration any deed or instrument necessary to give effect to the
the adverse party, or that it is not necessary to protect the rights of judgment, and shall require the registered owner to deliver his duplicate
the party who caused it to be recorded certificate to the plaintiff or to the Register of Deeds to be canceled or to
o i.e. When the case had been unnecessarily prolonged by have a memorandum annotated upon it. In case the person required to
repeated amendments of the complaints by the plaintiffs, execute any deed or other instrument necessary to give effect to the
and the circumstances on record justified the conclusion judgment is absent from the Philippines, or is a minor, or insane, or for any
that the annotation of the notice of lis pendens was reason not amenable to the process of the court rendering the judgment,
intended to molest and harass the defendants said court may appoint a suitable person as trustee to execute such
(b) Upon action by the Register of Deeds at the instance of the party who caused instrument which, when executed, shall be entitled to registration.
the registration of the notice
(c) Upon verified petition of the party who caused the registration thereof 1. Registration of judgment
 While the trial court has inherent power to cancel a notice of lis pendens, such  A judgment for te plaintiff in an action for recovery of possession or ownership
power is exercised under the express provisions of law affecting registered land shall be entitled to registration upon presentation of a
o Sec. 14, Rule 13 of the 1997 Rules of Civil Procedure: A notice of lis certificate of entry from the clerk of court to the Register of Deeds who shall enter
pendens may be cancelled on 2 grounds: a memorandum upon the certificate of title covering the land subject of the action
1. If the annotation was for the purpose of molesting the title of the  If only a portion of the land described in the certificate of title is affected: the
adverse party certificate of the clerk of court hsall contain a description of the portion involved
2. When the annotation is not necessary to protect the title of the  Registration is important in order to apprise third parties of the statues of the
party who caused it to be recorded land affected by the judgment
 When the Register of Deeds is requested to enter a new certificate of title in
CHAPTER VI pursuance of a judgment, and the owner’s duplicate certificate of title is NOT
presented fro cancellation, the Register of Deeds shall NOT enter a new certificate
REGISTRATION OF JUDGMENTS; ORDERS; PARTITIONS but the person claiming to be netitle thereto may apply by petition to the court,
which after hearing, may order the registered owner or any person whitholding
the duplicate to surrender the same
Section 78. Judgment for Plaintiff. Whenever in any action to recover
possession or ownership of real estate or any interest therein affecting
2. Registration of judgment adjudicating ownership
registered land judgment is entered for the plaintiff, such judgment shall
 When in any action for recovery of possession judgment has been entered for the
be entitled to registration on presentation of a certificate of the entry
plaintiff, the judgment shall in like manner be registered and the adjudicatee
thereof from the clerk of court where the action is pending to the Register
shall be entitled to the issuance of a new certificate of title upon cancellation of the
of Deeds for the province or city where the land lies, who shall enter a
title of the preceeding owner
memorandum upon the certificate of title of the land to which such
 If owner neglects or refuses to produce his owner’s duplicate certificate for
judgment relates. If the judgment does not apply to all the land described
cancellation by the Register of Deeds, the court shall, on application and notice,
in the certificate of title, the certificate of the clerk of the court where the
enter an order to the owner to produce said owner’s duplicate at the time and
action is pending and the memorandum entered by the Register of Deeds
place designated and may enforce the order by suitable process
shall contain a description of the land affected by the judgment.
3. Execution of deed pursuant to a judgment
Section 79. Judgment adjudicating ownership. When in any action to  In cases where judgment is rendered by the court affecting registered property or
recover the ownership of real estate or an interest therein execution has any interest therein, the court shall direct the parties to execute the requisite deed
been issued in favor of the plaintiff, the latter shall be entitled to the entry or instrument as may be necessary to give effect to the judgment for registration,
of a new certificate of title and to the cancellation of the original certificate and when required by the terms the judgment, direct the reigstered owner to
and owner's duplicate of the former registered owner. If the registered surrender his owner’s duplicate certificate of title for cancellation or entry of the
owner neglects or refuses within a reasonable time after request of the appropriate memorandum thereon
plaintiff to produce his duplicate certificate in order that the same may be  If the person required to execute the deed or instrument necessary to give effect to
the judgment is absent from the PH, is a minor, insane, or is not amenable to the
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LAND TITLES REVIEWER 2C 2019 (PART 2)

process of the court: court may appoint a suitable person as trustee to exeute such o If the parties can agree among themselves: partition can be made by
deed or instrument which shall be entitled to registration them through the proper instruments of conveyance which shall be
 Recording of the proper deed or instrument: to prevent frauds and permit the submitted for approval of the court, and such partition with the court
public to act with the presumption that the recorded deed or instrument exists order confirming the same shall be recorded in the office of the propert
and is genuine Register of Deeds
o If the parties cannot agree upon the partition: the court shall by order
Section 81. Judgment of partition. In proceedings for partition of registered appoint not more than 3 competent and disinterested persons as
land, after the entry of the final judgment of partition, a copy of such final commissioners to make the partition
judgment, certified by the clerk of the court rendering the same, shall be  Partition may be judicial or extrajudicial
filed and registered; thereupon, if the land is set of to the owners in
severalty, each owner shall be entitled to have his certificate entered
showing the share set off to him in severalty, and to receive an owner's (1) Judicial partition
duplicate thereof.  Action for partition of real property – a judicial controversy between persons
who, being co-owners or co-parceners thereof, seek to secure a division or
If the land is ordered by the court to be sold, the purchaser or his assigns partition among them of the common property, giving to each one the part
shall be entitled to certificate of title entered in his or their favor upon corresponding to him
presenting a certified copy of the judgment confirming the sale.  A person with right to compel the partition of real estate may do so by setting
forth in his complaint:
In case the land is ordered by the court to be assigned to one of the parties o The nature and extent of his title
upon payment to the others of the sum ordered by the court, the party to o An adequate description of the real estate of which partition is
whom the land is thus assigned shall be entitled to have a certificate of title demanded
entered in his favor upon presenting a certified copy of the judgment: o Joining as defendants all other persons interested in the property
Provided, however, that any new certificate entered in pursuance of  If after trial the court finds that the plaintiff has the right, it shall order the
partition proceedings, whether by way of set-off or of assignment or of partition of the real estate among all the parties in interest
sale, shall contain a reference memorandum to the final judgment of  If parties are able to agree, they may partition among themselves by proper
partition, and shall be conclusive as to the title to the same extent and instruments of conveyance
against the same persons as such judgment is made conclusive by the laws  Court will then confirm the partition so agreed upon
applicable thereto: and provided, further, that any person holding such  Such partition, together with the order of the court confirming the same,
certificate of title or a transfer thereof shall have the right to petition the shall be recorded in the Registry of Deeds of the place in which the property
court at any time to cancel the memorandum relating to such judgment or is situated
order and the court, after notice and hearing, may grant the petition. Such  If actual partition is made:
certificate shall thereafter be conclusive in the same manner and to the o Judgment shall state definitely, by metes and bounds and adequate
same extent as other certificates of title. description, the particular portion of the real estate assigned to
each party
 The expenses of recording the partition shall be taxed as part of the costs of
1. Partition, generally
the action
 Partition – the separation, division and assignment of a thing held in common
 Section 81: After the entry of the final judgment of partition:
among those to whom it may belong
o A copy of such final judgment, certified by the clerk of court, shall
o Both real and personal properties may be the object of partition
be filed and registered with the proper Registry of Deeds
o 2 or more heirs, the whole estate of the decedent is, before its partition,
o If the land is set off to the owners in severalty, each owner shall be
owned in common
entitled to have his certificate entered showing the share set-off to
 The titles of acquisition or ownership of each property shall be delivered to the co-
him in severalty, and to receive an owner’s duplicate thereof
heir to whom said property has been adjudicated
 When the title comprises of 2 or more pieces of land which have been assigned to 2
(2) Extrajudicial partition between heirs
or more co-heirs, or when it covers 1 piece of land which has been divided between
 If decedent left no will and no debts and the heirs are all of age, or the
2 or more co-heirs, the title shall be delivered to the one having the largest
minors are represented by their judicial or legal representative duly
interest
authorized fro the purpose
o Authentic copies of the title shall be furnished to the other co-heirs at
o The parties may, without securing letters of administration, divide
the expense of the estate
the estate among themselves as they see fit by means of a public
 If the interest of each co-heir should be the same, the oldest shall have the title
instrument filed in the office of the Register of Deeds
 After a judgment is rendered in an action for partition declaring that the property o Should they disagree, they may do so in an ordinary action for
in question shall be divided among the parties thereto: partition

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LAND TITLES REVIEWER 2C 2019 (PART 2)

o If there is only 1 heir, he may adjudicate to himself the entire Section 83. Notice of insolvency. Whenever proceeding in bankruptcy or
estate by means of an affidavit filed in the office of the Register of insolvency, or analogous proceedings, are instituted against a debtor who
Deeds owns registered land, it shall be the duty of the officer serving the notice of
 The parties to an extrajudicial settlement, whether by public instrument or the institution of such proceedings on the debtor to file a copy thereof with
by stipulation in a pending action for partition, or the sole heir who the office of the Register of Deeds for the province or city where the land of
adjudicates the entire estate to himself by means of an affidavit shall file, the debtor lies. The assignee or trustee appointed by the court in such
simultaneously with and as a condition precedent to the filing of the public proceedings shall be entitled to the entry of a new certificate of the
instrument, or stipulation in the action for partition, or of the affidavit in the registered land of the debtor or bankrupt, upon presenting and filing a
office of the Reigster of Deeds, a bond with the said Register of Deeds, in an certified copy of the assignment in insolvency or order or adjudication in
amount equivalent to the value of the personal property involved as certified bankruptcy with the insolvent's or bankrupt's duplicate certificate of title;
under oath by the parties concerned and conditioned upon the payment of but the new certificate shall state that it is entered to him as assignee in
any just claim that may be filed under Sec. 4 of Rule 74 insolvency or trustee in bankruptcy or other proceedings, as the case may
 It shall be presumed that the decedent left no debts if no creditor files be.
petition for letters of administration within 2 years after the death of the
decedent
1. Insolvency proceedings in rem
 The fact of the extrajudicial settlement or adminsitration shall be published
in a newspaper of general circulation in the manner provided by the rules;  Insolvency proceedings and settlement of a decedent’s estate: both proceedings in
but no extrajudicial settlement shall be binding upon any person who has rem
not participated therein or had no notice thereof o Binding against the whole world
 All persons having interest in the subject matter involved, whether notified or not,
2. Stage in partition are equally bound
 De Mesa v. CA: There are 2 stages involved in the special civil action of judicial  A liquidation of similar import or “other equivalent general liquidation” must also
partition and accounting under Rule 69 of the Rules of Court: necessarily be a proceeding in rem
o So that all interested persons whether known to the parties or not may
The first stage is concerned with the determination of W/N a co-ownership in fact be bound by such proceeding
exists and a partition is proper (it is not otherwise legally proscribed and may be
mde by voluntary agreement of all the parties interested in the property) 2. Notice of insolvency; powers of assignee
 Section 83: Whenever proceedings in bankruptcy or insolvency, or analogous
The second stage commences when the parties are unable to agree upon the proceedings, are instituted against a debtor who owns registered land, it shall be
partition ordered by the court. In that event, the partition shall be effected for the the duty of the officer serving the notice of the institution of such proceedings to
parties by the court with the assistance of not more than 3 commissioners. file a copy thereof with the office of the Register of Deeds for the province or city
where the land of the debtor lies
3. Purpose of registration  Assignee or trustee appointed by the court: entitled to the entry of a new
 Maglucot-aw v. Maglucot: The purpose of registration is to notify and protect certificate of the registered land of the debtor or bankrupt, upon presenting a nd
the interests of strangers to a given transaction, who may be ignorant thereof, but filing a certified copy of the assignment in insolvency or order or adjudication in
the non-registration of the deed evidencing such transaction does not relieve the bankruptcy + insolvent’s or bankrupt’s duplicate certificate of title
parties thereto of their obligations thereunder  Powers of the assignee:
o To sue, and recover all the estate, assets, debts, and claims, belonging to
Section 82. Registration of prior registered mortgaged or lease on or due to such debtor
partitioned property. If a certified copy of a final judgment or decree of o Take into his possession all the estate of such debtor
partition is presented and it appears that a mortgage or lease affecting a  E: Property exempt by law from execution, whether attached
specific portion or an undivided share of the premises had previously been or delivered to him, or afterward discovered
registered, the Register of Deeds shall carry over such encumbrance on the
certificate of title that may be issued.
Section 84. Judgment or order vacating insolvency proceedings. Whenever
any of the proceedings of the character named in the preceding section
1. Partition of land subject of mortgage against a registered owner, of which notice has been registered, is vacated
 When a certified copy of the final judgment or decree of partition is presented for by judgment, a certified copy of the judgment or order may be registered.
registration and it appears that a mortgage or lease affecting a specific portion, or Where a new certificate has been entered in the name of the assignee or
an undivided share of the property had been previously registered, the Register of trustee, such certificate shall be surrendered for cancellation and forthwith
Deeds shall carry over and annotate such encumbrance on the certificate of title the debtor shall be entitled to the entry of a new certificate to him.
that may be issued, with a description of the land set-off in severalty on which
such mortgage or lease remains in force
1. Judgment or order vacating insolvency proceedings
 The certified copy of the judgment or order may be registered
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 Where a new certificate has been entered in the name of the assignee or trustee, o Manosca v. CA: The SC upheld the expropriation of a
such certificate shall be surrendered for cancellation and forthwith the debtor parcel of land as a national historical landmark because it
shall be entitled to the entry of a new certificate to him was the birthplace of the founder of the Iglesia ni Cristo.
 Public use is no longer limited to traditional purposes
2. Recording of judgment; entry of new certificate o Synonymous with “public benefit,” “public welfare,”
 Where any proceeding in bankruptcy or insolvency, or analogous, is vacated by “public interest,” and “public convenience.”
judgment or order of the court, a certified copy may be registered in the proper o There must be genuine necessity, like taking of private
registry lands for agrarian reform
 Where a certificate had been entered in the name of the assignee or trustee, such
certificate shall be surrendered for cancellation and forthwith the debtor shall be (2) Payment of just compensation
entiteld to the entry of a new certificate to him  Republic v. Castellvi: There is compensable taking when the
following conditions concur: (EMAPO)
Section 85. Land taken by eminent domain. Whenever any registered land, o Expropriator must Enter private property
or interest therein, is expropriated or taken by eminent domain, the o The entry must be for More than a momentary period
National Government, province, city, municipality, or any other agency or o The entry must be under warrant or color of legal
instrumentality exercising such right shall file for registration in the proper Authority
Registry a certified copy of the judgment which shall state definitely, by an o The property must be devoted to Public use or otherwise
adequate description, the particular property or interest expropriated, the informally appropriated or injuriously affected
number of the certificate of title, and the nature of the public use. A o The utilization of the property for public use must be in
memorandum of the right or interest taken shall be made on each such a way as to Oust the owner and deprive him of
certificate of title by the Register of Deeds, and where the fee simple title is beneficial enjoyment
taken, a new certificate shall be issued in favor of the National  Just compensation – full and fair equivalent of the property
Government, province, city, municipality, or any other agency or taken from its owner by expropriator
instrumentality exercising such right for the land so taken. The legal o Measured not by the taker’s gain but by the owner’s loss
expenses incident to the memorandum of registration or issuances incident o “Just” – the equivalent price must be substantial, full,
to the memorandum of registration or issuance of a new certificate shall be ample
for the account of the authority taking the land or interest therein.
(3) When to determine value of compensation
 It should be based on the price at the time it was taken from the
1. Eminent domain, generally. owner and appropriated by the government
 The ultimate right of the sovereign power to appropriate any property within  When the taking coincides with the commencement of the
its territorial sovereignty for a public purpose expropriation proceedings or takes place subsequent to the filing of
 Requirements for proper exercise: the complaint, the compensation should be determined as of the
1. Public use date of the filing of the complaint.
2. Just compensation 2. Recording of judgment.
 Local government units may also exercise this, subject to limitations in the  The judgment entered in expropriation proceedings shall state:
Local Government Code (R.A.7160) and the Urban Development Housing Act o The particular property or interest therein expropriated
(R.A.7279) o Nature of the public use or purpose for which it is expropriated
o The expropriation must be done through an ordinance and not just a  When what is expropriated is real property, a certified copy of such judgment
mere resolution. shall be recorded in the Registry of Deeds of the place in which the property is
situated
(1) Requirement of public use o Such registration will vest in the government the title to the real
 Two approaches estate
o Public employment or actual use of the public
o Public advantage or benefit
 May include subdividing lots for resale to individuals and transfer SEC. 86. Extrajudicial settlement of estate. When a deed of extrajudicial settlement
of utilities and other enterprises to the government has been duly registered, the Register of Deeds shall annotate on the proper title the
 Ardona v. Reyes: Public use is not limited to traditional uses. The two-year lien mentioned in Section 4 of Rule 74 of the Rules of Court. Upon the
expiration of the two-year period and presentation of a verified petition by the
expropriation of 282 hectares of land to establish a resort that
would promote tourism is a valid exercise of eminent domain. registered heirs, devisees or legatees or any other party in interest that no claim or
claims of any creditor, heir or other person exist, the Register of Deeds shall cancel
 Public use must be considered in its general concept of meeting a
the two-year lien noted on the title without the necessity of a court order. The
public need or exigency.
verified petition shall be entered in the Primary Entry Book and a memorandum

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thereof made on the title. o A copy of each week’s issue of the newspaper wherein the publication
appeared
No deed of extrajudicial settlement or affidavit of adjudication shall be registered
unless the fact of extrajudicial settlement or adjudication is published once a week SEC. 87. Filing of letters of administration and will. Before the executor or
for three consecutive weeks in a newspaper of general circulation in the province administrator of the estate of a deceased owner of registered land may deal with the
and proof thereof is filed with the Register of Deeds. The proof may consist of the same, he shall file with the office of the Register of Deeds a certified copy of his
certification of the publisher, printer, his foreman or principal clerk, or of the editor, letters of administration or if there is a will, a certified copy thereof and the order
business or advertising manager of the newspaper concerned, or a copy of each allowing the same, together with the letters testamentary or of administration with
week's issue of the newspaper wherein the publication appeared. the will annexed, as the case may be, and shall produce the duplicate certificate of
title, and thereupon the Register of Deeds shall enter upon the certificate a
1. Extrajudicial settlement by agreement of the parties. memorandum thereof, making reference to the letters and/or will by their file
 If the decedent left no will and no debts and the heirs are all of legal age, or number, and the date of filing the same.
the minors are represented by their judicial and legal representatives duly
authorized for the purpose, the parties may, without securing letters of SEC. 88. Dealings by administering subject to court approval. After a memorandum
administration, divide the estate by means of a pubic instrument filed with the of the will, if any, and order allowing the same, and letters testamentary or letters of
Register of Deeds. administration have been entered upon the certificate of title as hereinabove
 If they disagree, they may do so in an ordinary action of partition. provided, the executor or administrator may alienate or encumber registered land
 If there is only one heir, he may adjudicate to himself the entire estate through belonging to the estate, or any interest therein, upon approval of the court obtained
an affidavit filed in the Office of the Register of Deeds. as provided by the Rules of Court.
 The parties to an EJS, whether by public instrument or by stipulation in a
pending action for partition, or the sole heir shall file simultaneously with and
1. Letters testamentary and administration, to whom issued.
as a condition precedent to the filing of the public instrument, or stipulation
 The following cannot be executors or administrators:
or affidavit, a bond with the said Register of Deeds.
o Minors
o The bond must be in an amount equivalent to the value of personal
o Non-residents of the Philippines
property involved as certified to under oath by the parties concerned
o Those who in the opinion of the Court are unfit to execute the duties
and conditioned upon the payment of any just claim that may be filed
of the trust by reason of drunkenness, improvidence, or want of
under Section 4 of Rule 74.
understanding or integrity or by reason of conviction of an offense
 Presumption: If no creditor files a petition for letters of administration within
involving moral turpitude
2 years after the death of the decedent, the decedent left no debts.
 When a will has been proved and allowed, the court shall issue letters
testamentary to the named executor if:
2. Registration of extrajudicial settlement
o He is competent;
 When a deed of extrajudicial settlement has been duly registered, the Register
o Accepts the trust; and
of Deeds shall annotate on the proper title the two-year lien mentioned in
o Gives a bond as required by the Rules
Section 4 of Rule 74.
 If no executor is named in the will or if the executor/s are incompetent, refuse
 Upon expiration of the 2-year period and presentation of a verified petition by
the trust or fail to give a bond, or a person dies intestate, administration shall
the registered heirs, devisees or legatees that no claim or claims of any
be granted:
creditor, heir or other person exist, the Register of Deed shall cancel the lien
o To the surviving husband / wife, or the next of kin, or both in the
noted on the title without necessity of a court order.
discretion of the court, or to such person as such surviving husband
 The petition shall be entered in the Primary Entry Book and a memorandum of wife, or next of kin, requests to have appointment, if competent
made on the title. and willing to serve;
o If such surviving husband or wife, or next of kin, or person selected
3. Requirement of publication
by them, be incompetent or unwilling, or neglects for 30 days after
 Section 86 provides that no deed of extrajudicial settlement or affidavit of the death of the person to apply for administration or request to that
adjudication shall be registered unless: administration be granted to some other person, it may be granted to
o The fact of extrajudicial settlement is published once a week for 3 one or more of the principal creditors, if competent and willing to
consecutive weeks in a newspaper of general circulation; and serve;
o Proof thereof is filed with the Register of Deeds o If there is no such creditor competent and willing to serve, it may be
 Proof may consist of: granted to such other person chosen by the court.
o Certification of the publisher/printer/his foreman/principal clerk, or
of the editor, business or advertising manager of the newspaper 2. Letters of administration, when granted to any person.
concerned; or  They may be granted to any qualified applicant even though it appears that
there are other competent persons having better right to the administration
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LAND TITLES REVIEWER 2C 2019 (PART 2)

when such persons fail to appear when notified and claim the issuance of anticipation of final distribution a portion or the whole of the registered land to
letters. which they might be entitled on final distribution, upon the filing of a certified copy
of such order in the office of the Register of Deeds, the executor or administratory
3. Appointment of special administrator. may cause such transfer to be made upon the register in like manner as in case of a
 In case of delay in granting letters, the court may appoint a special sale, and upon the presentation of the owner's duplicate certificate to the Register
administrator until the questions causing the delay are decided and executors of Deeds, the devisees or heirs concerned shall be entitled to the issuance of the
appointed. corresponding certificates of title.

4. Filing of letters of administration and will.


 Before the executor / administrator deals with the registered land, he shall file SEC. 92. Registration of final distribution of estate. A certified copy of the partition
with the office of the Register of Deeds: and distribution, together with the final judgment or order of the court approving
o A certified copy of his letters of administration, or the same or otherwise making final distribution, supported by evidence of payment
o A certified copy of will (if there is one) and the order allowing the of estate taw or exemption therefrom, as the case may be, shall be filed with the
same, together with the letters testamentary or of administration Register of Deeds, and upon the presentation of the owner's duplicate certificate of
with the will annexed title, new certificates of title shall be issued to the parties severally entitled thereto
o Duplicate certificate of title in accordance with the approved partition and distribution.
 The Register of Deeds shall enter upon the certificate a memorandum, making
reference to the letters and/or will by their final number and the date of filing 1. Sales, mortgages, and other encumbrances of property of decedent.
the same.  When it appears that the sale of the whole or part of the real or personal estate
will be beneficial to the heirs, devisees, legatees and other interested persons,
5. Dealings by administrator subject to approval by the court. the court may, upon application of the executor or administrator and on
 After a memorandum of the will, if any, and order allowing the same, and written notice to the heirs, devisees and legatees who are interested in the
letters testamentary or letters of administration have been entered upon the estate to be sold, authorize the executor or administrator to sell the whole or a
certificate of title, the executor may alienate or encumber registered land part of said estate
belonging to the estate, or any interest, upon approval of the court as provided o Authority will not be granted if inconsistent with the provisions of a
by the ROC: will
 A judicial administrator is appointed by the court o The proceeds shall be assigned to all persons entitled to the estate in
o Not only a representative of the court but also the heirs and creditors the proper proportions.
o He is required to file a bond before entering into his duties  The court may authorize an executor/administrator to sell/mortgage/encumber
o He can validly lease property of the estate without prior judicial real estate under the same circumstances the same regulations in Rule 89.
approval.
2. Regulations for granting authority to sell, mortgage or encumber estate.
SEC. 89. Land devised to executor. When it appears by will, a certified copy of which  The court having jurisdiction of the estate may authorize the executor or
with letters testamentary had already been filed as provided in this Decree, that administrator to sell personal estate, or to sell, mortgage or encumber real
registered land is devised to the executor to his own use, or upon some trust, the estate in cases provided by the rules and when it appears necessary /
executor may have the land transferred to himself upon the register in like manner beneficial.
and subject to like terms and conditions and to like rights as in the case of a transfer
pursuant to a deed filed in the office of the Register of Deeds. 3. Registration of final partition and distribution of estate.
 A certified copy of the partition and distribution, together with the final
judgment / order of the court shall be filed with the Register of Deeds.
 Upon presentation of the owner’s duplicate certificate of title, new certificates
SEC. 90. When executor empowered by will to sell, etc. When the will of a deceased of title shall be issued to the parties severally entitled thereto.
owner of registered lands, or an interest therein, empowers the executor to sell,  Section 4, Rule 90, ROC: Certified copies of final orders and judgments of the
convey, encumber, charge or otherwise deal with the land, a certified copy of the court relating to the real estate or partition thereof shall be recorded in the
will and letters testamentary being filed as provided in this Decree, such executor Registry of Deeds of the province where the property is located.
may sell, convey, encumber, charge or otherwise deal with the land pursuant to the
power in like manner as if he were registered owner, subject to the terms and
CHAPTER VII
conditions and limitations expressed in the will.
ASSURANCE FUND
SEC. 91. Transfer in anticipation of final distribution. Whenever the court having
jurisdiction of the testate or intestate proceedings directs the executor or SEC. 93. Contribution to Assurance Fund. Upon the entry of a certificate of title in the
administrator to take over and transfer to the devisees or heirs, or any of them, in name of the registered owner, and also upon the original registration on the

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LAND TITLES REVIEWER 2C 2019 (PART 2)

certificate of title of a building or other improvements on the land covered by said o Through these remedial proceedings, the law, while holding registered
certificate, as well as upon the entry of a certificate pursuant to any subsequent titles indefeasible, allows redress calculated ot prevent one from
transfer of registered land, there shall be paid to the Register of Deeds one-fourth of enriching himself at the expense of other.
one per cent of the assessed value of the real estate on the basis of the last o Necessarily, without setting aside the decree of title, the issues raised in
assessment for taxation purposes, as contribution to the Assurance Fund. Where the the previous registration case are relitigated for purposes of reconveyane
land involved has not yet been assessed for taxation, its value for purposes of this of said title or recovery of damages.
decree shall be determined by the sworn declaration of two disinterested persons to  According to the principles underlying the Torrens system, it is a condition sine
the effect that the value fixed by them is to their knowledge, a fair valuation. qua non that:
(a) the person who brings an action for damages against the Assurance Fund be
Nothing in this section shall in any way preclude the court from increasing the the registered owner, and, as to holders of transfer certificates of title, that
valuation of the property should it appear during the hearing that the value stated is they be innocent purchasers in good faith and for value, and
too small. (b) there must be a showing that there is no negligence on the part of the party
sustaining the loss or damage or deprivation of any land or interest therein
by the operation of the Property Registration Decree.
SEC. 94. Custody and investment of fund. All money received by the Register of  It has been held that where plaintiff is solely responsible for the plight in which it
Deeds under the preceding section shall be paid to the National Treasurer. He shall finds itself, the Director of Lands and the National Treasurer of the Philippines
keep this money in an Assurance Fund which may be invested in the manner and are exempt from any liability.
form authorized by law, and shall report annually to the Commissioner of the Budget  In another case, the Court sustained the dismissal by the trial court of the third-
the condition and income thereof. party complaint against the Treasurer of the Philippines as custodian of the
Assurance Fund after finding the third-party plaintiffs negligent in protecting
The income of the Assurance Fund shall be added to the principal until said fund their interest.
amounts to five hundred thousand pesos, in which event the excess income from  Joaquin v. Madrid: In order that the holder of a certificate for value issued by
investments as well as from the collections of such fund shall be paid into the virtue of the registration of a voluntary instrument may be considered a holder in
National Treasury to the account of the Assurance Fund. good faith for value, the instrument registered should not be forged.

SEC. 95. Action for compensation from funds. A person who, without negligence on 2. Recorded mortgage protected even if title is subsequently nullified.
his part, sustains loss or damage, or is deprived of land or any estate or interest  Blanco v. Esquierdo: Defendant, claiming to be the widow and only heir of her
therein in consequence of the bringing of the land under the operation of the Torrens deceased husband, obtained cancellation of the latter’s certificate of title and
system of arising after original registration of land, through fraud or in consequence caused the issuance in her name of a TCT for the entire land. Plaintiffs, brothers
of any error, omission, mistake or misdescription in any certificate of title or in any and sisters of the deceased, filed a complaint to annul defendant’s title alleging
entry or memorandum in the registration book, and who by the provisions of this that the deceased died with only the plaintiffs as heirs. Included as party
Decree is barred or otherwise precluded under the provision of any law from defendant was the DBP to which the property was mortgaged by defendant. The
bringing an action for the recovery of such land or the estate or interest therein, may SC upheld the bank’s contention, holding:
bring an action in any court of competent jurisdiction for the recovery of damages to o That the certificate of title issued in the name of Esquierdo is a nullity,
be paid out of the Assurance Fund. the same having been secured through fraud, is not here in question.
The only question for determination is whether the defendant is entitled
to the protection accorded to innocent purchasers for value, which
1. Claims against the Assurance Fund.
according to Sec. 32 of the Property Registration Decree, includes an
 Section 95 provides a remedy where a person who sustains loss or damage or is
innocent mortgagee in good faith. The question, in our opinion, must be
deprived of any estate or interest in land in consequence o the operation of the
answered in the affirmative.
Torrens system of registration, without negligence on his part, may bring an
o The trial court made no finding that the defendant mortgagee bank was
action for the recovery of damages to be paid out of the Assurance Fund.
a party to the fraudulent transfer of the land to Esquierdo. The
 Requisites for recovery from the Assurance Fund
certificate of title was in the name of the mortgagor Esquierdo when the
(a) that a person sustains loss or damage, or is deprived of any estate or interest
land was mortgaged by her to the defendant bank. Such being the case,
in land,
the defendant bank, as mortgagee, had the right to rely on what
(b) on account of the bringing of land under the operation of the Torrens system
appeared in the certificate and, in the absence of anything to excite
arising after original registration,
suspicion, was under no obligation to look beyond the certificate and
(c) through fraud, error, omission, mistake or misdescription in a certificate of
investigate the title of the mortgagor appearing on the face of said
title or entry or memorandum in the registration book,
certificate. Being thus an innocent mortgagee for value, its right or lien
(d) without negligence on his part, and
upon the land mortgaged must be respected and protected, even if the
(e) is barred or precluded from bringing an action for the recovery of such land or
mortgagor obtained her title thereto through fraud.
estate or interest therein.
o The remedy of the persons prejudiced is to bring an action for damages
 The Supreme Court explained:
against the causing the fraud, and if the latter are insolvent, an action
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LAND TITLES REVIEWER 2C 2019 (PART 2)

against the Treasurer of the Phlippines may be filed for the recovery of o The deception imposed upon them by the impostor deprived the private
damages against the Assurance Fund. respondents of the money they delivered to him as consideration for the
sale. But there is no question that the subsequent cancellation of the
SEC. 96. Against whom action filed. – If such action is brought to recover for loss or sale did not deprive them of the land subject thereof, or of any interest
damages or for deprivation of land or of any estate or interest therein arising wholly therein, for they never acquired ownership over it in the first place.
through fraud, negligence, omission, mistake or misfeasance of the court personnel,  Torres v CA: There are circumstances in this case which should have put said
Register of Deeds, his deputy, or other employees of the Registry in the performance plaintiffs on guard and prompted them to investigate the property being
of their respective duties, the action shall be brought against the Register of Deeds mortgaged to them. For example, the land in question is a very valuable property,
of the province or city where the land is situated and the National Treasurer as and had been offeered as collateral for more than half a million pesos in loans. Its
defendants. But if such action is brought to recover for loss or damage or for value lies principally in its income potential, in the form of substantial monthly
deprivation of land or of any interest therein arising through fraud, negligence, rentals. The title does not yield any information as to the amount of rentals due
omission, mistake or misfeasance of person other than court personnel, the Register from the building, much less on who is collecting them, or who is recognized by the
of Deeds, his deputy or other employees of the Registry, such action shall be brought tenants as their landlord. Any prospective buyer or mortgagee of such a property,
against the Registry of Deeds, the National Treasurer and other person or persons as if prudent and in good faith, is normally expected to inquire into all these and
co-defendants. It shall be the duty of the Solicitor General in person or by related facts and circumstances. And yet plaintiffs did not look into these facts did
representative to appear and to defend all such suits with the aid of the fiscal of the not look into these facts.
province or city where the land lies: Provided, however, That nothing in this Decree
shall be construed to deprive the plaintiff of any right of action which he may have SEC. 97. Judgment, how satisfied. – If there are defendants other than the National
against any person for such loss or damage or deprivation without joining the Treasurer and the Register of Deeds and judgment is entered for the plaintiff and
National Treasurer as party defendant. In every acion filed against the Assurance against the National Treasury, the Register of Deeds and any of the other
Fund, the court shall consider the report of the Commissioner of Land Registration. defendants, execution shall first issue against such defendants other than the
National and the Register of Deeds. If the execution is returned unsatisfied in whole
1. Against whom claim for damages may be filed. or in part, and the officer returning the same certificates that the amount due cannot
 Claims against the Assurance Fund are provided for in Section 102 of the Property be collected from the land or personal property of such other defendants, only then
Registration Decree, to wit: shall the court, upon proper showing, order the amount of the execution and costs,
(a) If the action is brought for the recovery of loss or damage or for deprivation of or so much thereof as remains unpaid, to be paid by the National treasurer out of the
land or of any estate or interest therein arising through fraud, negligence, Assurance Fund. In an action under this Decree, the plaintiff cannot recover as
omission, mistake or misfeassance of the court personnel, the Register of compensation more than the fair market value of the land at the time he suffered
Deeds or other employees of the registry in the performance of their duties, the loss, damage, or deprivation thereof.
the action shall be brought against the Register of Deeds of the province or
city where the land lies and the National Treasurer as defendants. 1. How judgment is satisfied.
(b) If the action is brought for the recovery of loss or damage or for deprivation of  Where judgment is rendered against the government, execution shall first issue
land or of any estate or interest therein arising through fraud, negligence, against the persons who have been joined as co-defendants, and if the eecution is
omission, mistake or misfeasance of persons other than the court personnel, returned unsatisfied, then the damages awarded by the court shall be assessed
the Register of Deeds or other employees of the Registry, the action shall be against the Assurance Fund.
brought against the Register of Deeds, the National Treasurer and such other  But the plaintiff cannot recover as compensation more than the fair market value
persons, as co-defendants. of the land at the time he suffered the loss, damage, or deprivation thereof.
 The plaintiff must clearly allege the basis of the action, and specify the details  In every case where payment has been made by the National Treasurer, the
which led to his loss, damage or deprivation, as well as the market value of the government shall be subrogated to the rights of the plaintiff against any other
property subject of the action. It shall be the duty of the Solicitor General to parties or securities, and any amount recovered shall be paid to the account of the
represent the government in all suits for recovery of damages against the Assurance Fund.
Assurance Fund. The court shall consider the report of the LRA Administrator on
the matter. SEC 98. General Fund when liable. – If at any time the Assurance Fund is not
sufficient to satisfy such judgment, the National Treasurer shall make up for the
(1) Where there is no deprivation of land or interest therein deficiency from any funds available in the treasury not otherwise appropriated.
 Treasurer of the Philippines v CA: A person, posing as the registered owner of
the land in question, transferred the land to private respondents who obtained a
TCT thereto. Said title was subsequently nullified on the ground that the transfer SEC. 99. Subrogation of government to plaintiff’s rights. – In every case where
was made by an impostor. In this case, the supposed vendor had no title or payment has been made by the National Treasurer in accordance with the provisions
interest in the land which he could transfer, and, consequently, the transferees of this Decree, the Government of the Republic of the Philippines shall be
could not have been deprived of land or any interest therein which can be subrogated to the rights of the plaintiff against any other parties or securities. The
compensated by the Assurance Fund. National Treasurer shall enforce said rights and the amount recovered shall be paid

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LAND TITLES REVIEWER 2C 2019 (PART 2)

to the account of the Assurance Fund. SEC. 101. Losses not recoverable. – The Assurance Fund shall not be liable for any
loss, damage or deprivation caused or occasioned by a breach of trust, whether
express, implied or constructive or by any mistake in the resurvey or subdivision of
registered land resulting in the expansion of area in the certificate of title.
SEC. 100. Register of Deeds as party in interest. – When it apears that the
Assurance Fund may be liable for damages that may be incurred due to the unlawful
or erroneous issuance of a certificate of title, the Register of Deeds concerned shall 1. Loss or damage arising from breach of trust not recoverable.
be deemed a proper party in interest who shall, upon authority of the Commissioner  The Assurance Fund shall not be liable for any loss, damage or deprivation of any
of Land Registration, file the necessary action in court to annul or amend the title. right or interest in land which may have been caused by a breach of trust, whether
express of implied, or by any mistake in the resurvey or subdivision of the land
The court may order the Register of Deeds to amend or cancel a certificate of title or resulting in the unlawful enlargement or expansion of the area thereof.
to do any other act asmay be just and equitable.  Guaranteed Homes, Inc. v. Valdez: Respondents, who are the descendants of
Pablo, filed a complaint seeking reconveyance of a parcel of land covered by an
OCT in the name of Pablo. In the alternative, respondents claimed damages
1. The Register of Deeds, upon authority of the LRA Administrator, is a proper
against the Assurance Fund. Respondents alleged that Pablo died intestate and
party to file action for annulment or amendment of title.
was survived by his 4 children, one of whom was the deceased Cipriano. Cipriano
 In the event the Assurance Fund is held liable on account of the unlawful or
executed a document wherein he declared himself as the only heir of Pablo which
erroneous issuance of a certificate of title, the Register of Deeds, upon authority of
led to the issuance of a TCT in his favor. Cipriano also confirmed the sales made
the LRA Administrator, shall file the necessary action to amend or cancel the title
by the decedent during his lifetime, including the alleged sale of the disputed
or perform any other act as may be directed by the court. Such action may pre-
property to the spouses Rodolfo, predecessors-in-interest of petitioner.
empt any action against the Assurance Fund.
o W/N petitioner is a buyer in good faith
 Eagle Realty Corporation v. Republic: CFI rendered a decision adjudicating
o W/N the Assurance Fund is liable for damages
the land in question to de Leon and his children. It also appears that, in the same
o The Court ruled that petitioner is a buyer in good faith since at the time
registration case, another decision was purportedly rendered by th ecourt on the
of the sale, the property was registered in the name of Rodolfo. Even
same date adjdicating the same property to Medina, alleged intervenor, which
assuming that the extrajudicial settlement executed by Cipriano was a
decision was surreptitiously inserted in the records of the case. Following an
forgery, case law is that although generally a forged or fraudulent deed
investigation, the Republic, filed the complaint for the cancellation of Medina’s
is a nullity and conveys no title, there are instances when such a
title. The Republic alleged that the De Leon decision, together with the order for
fraudulent document may become the root of a valid title. And one such
issuance of decree, was surreptitiously substituted with the Medina decision, and
instance is where the certificate of title was already transferred from the
the LRC, unaware of any irregularity, issued an OCT to Medina on the basis of
name of the true owner to the forger, and while it remained that way,
these fake documents.
the land was subsequently sold to an innocent purchaser. For then, the
o Eagle Realty argued that the Republic is not the real party in interest
vendee had the right to rely upon what appeared in the certificate.
since the subject property is private; moreover, it is a buyer in good faith
o On the second issue, the Court held that respondents’ claim against the
and for value. Petitioner also filed a third-party complaint against the
Assurance Fund cannot prosper. Section 101 of P.D. No. 1529 provides
National Treasurer for the payment of claims against the Assurance
that the Assurance Fund shall not be liable for any loss, damage or
Fund.
deprivation of any right or interest in land which may have been caused
o The Court held that it is not essential that the Republic has proprietary
by a breach of trust, as that occasioned by Cipriano’s execution of the
rights over the property in dispute. The complaint merely seeks the
extrajudicial settlement wherein he claimed to be the only heir of the
cancellation of erroneously issued titles in order to protect the Assurance
deceased Pablo, to the exclusion of the respondents. Moreover,
Fund from liability. Indisputably, the government is charged with the
respondents’ claim has already prescribed since an action against the
duty to preserve the integrity of the Torrens System and protect the
Assurance Fund must be brought within 6 years from the time the right
Assurance Fund.
to bring such action first occurred.
o The Court further held that petitioner’s claim against the Assurance
Fund is untenable. It was not deprived of land in consequence of
2 . Loss or damage through erroneous resurvey resulting in expansion of the area
bringing it under the operation of the Torrens system through fraud or
not recoverable.
in consequence of any error, omission, mistake or misdescription in the
 Section 101 provides that the Assurance Fund shall not be liable for any loss,
certificate of title. It was simply a victim of unscrupulous individuals.
damage or deprivation of property caused by any mistake in the resurvey or
o More importantly, it is a condition sine qua non that the person who
subdivision of registered land resulting in the expansion of area in the certificate
brings the action for damages against the Assurance Fund be the
of title.
registered owner and, as to the holder of TCTs, that they be innocent
 This has resulted in land grabbing affecting both public and private property, not
purchasers in good faith and for value. Petitioner does not qualify as
to mention its destabilizing effect on the Torrens system of registration.
such.
 The law mandates that the Assurance Fund shall not be held liable for any loss or
damage if the increase in area has come about because of irregular surveys.

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LAND TITLES REVIEWER 2C 2019 (PART 2)

o Public land patents when duly registered are veritable Torrens


SEC. 102. Limitation of Action. – Any action for compensation against the Assurance titles subject to no encumbrances except those stated therein, plus
Fund by reason of any loss, damage or deprivation of land or any interest therein those specified by the statute.
shall be instituted within a period of six years from the time the right to bring such o They become private property which can no longer be the subject of
action first occurred: Provided, That the right of action herein provided shall survive subsequent disposition by the Director of Lands.
to the legal representative of the person sustaining loss or damage, unless barred in  Lahora v. Dayanghirang: where disposable public land is granted by the
his lifetime; and Provided, further, That if at the time such right of action first government by virtue of a public land patent (like homestead, sales or free
accrued the person entitled to bring such action was a minor or insane or patent), the patent is recorded and the corresponding certificate of title is
imprisoned, or otherwise under legal disability, such person or anyone claiming issued to the grantee.
from, by or under him may bring the proper action at any time within two years after
o thereafter, the land is automatically brought within the operation
such disability has been removed, notwithstanding the expiration of the original
of the Property Registration Decree, entitled to all the safeguards of
period of six years first above provided.
a veritable Torrens title.
o In other words, upon expiration of one year from its issuance, the
1. Prescriptive period.
certificate of title shall become irrevocable and indefeasible like a
 The plaintiff has a period of 6 years from the time the right of action accrues
certificate issued in a registration proceeding.
within which to bring the action against the Assurance Fund. In a case, a
 Pajomayo v. Manipon: once a homestead patent granted under the Public
complaint filed more than 10 years after the property had been registered was
Land Act is registered under Sec. 122 of Act No. 496 (Sec. 103 of PD 1529),
ordered dismissed.
the certificate of title issues has the force and effect of a Torrens Title issued
through judicial proceedings. This principle is applicable to certificates of title
CHAPTER VIII
issued by virtue or other land patents under the Public Land Act.
 But a land registration court which has validly acquired jurisdiction over a
REGISTRATION OF PATENTS
parcel of land for registration of title cannot be divested of said jurisdiction by
a subsequent administrative act consisting in the issuance by the Director of
SEC. 103. Certificates of title pursuant to patents. — Whenever public land is by the Lands of a homestead patent covering the same parcel of land.
Government alienated, granted or conveyed to any person, the same shall be  De los Angeles v. Santos: the Director of Lands’ jurisdiction, administrative
brought forthwith under the operation of this Decree. It shall be the duty of the super- vision and executive control extend only over lands of the public
official issuing the instrument of alienation, grant, patent or conveyance in behalf of domain and not to lands already of private ownership. Accordingly, a
the Government to cause such instrument to be filed with the Register of Deeds of homestead patent issued by him over land not of the public domain is a
the province or city where the land lies, and to be there registered like other deeds nullity, devoid of force and effect against the owner.
and conveyance, whereupon a certificate of title shall be entered as in other cases of o “Proceedings for land registration are in rem, whereas proceedings
registered land, and an owner’s duplicate issued to the grantee. The deed, grant, for acquisition of homestead patent are not. A homestead patent,
patent or instrument of conveyance from the Government to the grantee shall not therefore, does not finally dispose of the public or private character
take effect as a conveyance or bind the land but shall operate only as a contract of the land as far as courts acting upon proceedings in rem are
between the Government and the grantee and as evidence of authority to the concerned.”
Register of Deeds to make registration. It is the act of registration that shall be the
operative act to affect and convey the land, and in all cases under this Decree, 2. Regalian doctrine - all lands and other natural resources are owned by
registration shall be made in the office of the Register of Deeds of the province or the State.
city where the land lies. The fees for registration shall be paid by the grantee. After  All lands of the public domain and all other natural resources are owned by
due registration and issuance of the certificate of title, such land shall be deemed to the State and all lands not otherwise clearly appearing to be privately owned
be registered land to all intents and purposes under this Decree. are presumed to belong the State which is the source of any asserted right to
ownership of land. This is expressed in Section 2, Article XII of the
Constitution.
1. Scope of Section 103
 Except for agricultural lands, natural resources cannot be alienated. The
 Instruments covering transfer of ownership of public lands which are
exploration, development and utilization (EDU) of natural resources shall be
alienated, granted, or conveyed by the government.
under the full control and supervision of the State.
o This provision directs the issuance to the grantee of “an owner’s  As owner of the natural resources, the State is accorded primary power and
duplicate certificate.” responsibility in the exploration, development and utilization of these natural
o After due registration and issuance of the certificate of title, the resources. The State may directly under- take the exploitation and
land shall be deemed registered land to all intents and purposes development by itself, or, it may allow participation by the private sector
under the Property Registration Decree. through co-production, joint venture, or production-sharing agreements.

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LAND TITLES REVIEWER 2C 2019 (PART 2)

 The Regalian doctrine reserves to the State all natural wealth that may be o “SEC. 3. Lands of the public domain are classified into
found in the bowels of the earth even if the land where the discovery is made agricultural, forest or timber, mineral lands, and national
be private. Thus, for instance, once minerals are discovered in the land, parks. Agricultural lands of the public domain may be
whatever the use to which it is being devoted at the time, such use may be further classified by law according to the uses to which
discontinued by the State to enable it to extract the minerals therein in the they may be devoted. Alienable lands of the public domain
exercise of its sovereign prerogative. shall be limited to agricultural lands. Private corporations
or associations may not hold such alienable lands of the
(1) Crown lands were per se alienable public domain except by lease, for a period not exceeding
 Under the Spanish regime, all Crown lands were per se alienable. twenty-five years, renewable for not more than twenty-
 Aldecoa v. Insular Government: With the exception of those five years, and not to exceed one thousand hectares in
comprised within the mineral and timber zone, all lands owned by area. Citizens of the Philippines may lease not more than
the State or by the sovereign nation are public in character, and per five hundred hectares, or acquire not more than twelve
se alienable and, provided they are not destined to the use of the hectares thereof by purchase, homestead or grant.”
public in general or reserved by the Government in accordance with  1935 Constitution - classified lands of the public domain into three
law, they may be acquired by any private or juridical person. groups, namely, agricultural, timber and mineral,
 Unless specifically declared as mineral or forest zone, or reserved
o “public agricultural lands” has always been construed as
by the State for some public purpose in accordance with the law, all
referring to those lands that were neither timber nor
Crown lands were deemed alienable.
mineral, and as including residential lands.
 Lands which are already private lands are not covered by the
 1973 Constitution - classified lands of the public domain into
classification requirement of Sec. 8 of Act No. 2874 for purposes of
agricultural, industrial, or commercial, residential, resettlement,
disposition. This exclusion recognizes that during the Spanish
mineral, timber or forest, and grazing lands, and such other classes
regime, Crown lands were per se alienable unless falling under
as may be provided by law.
timber or mineral zones, or otherwise reserved for some public
 Ancestral domains and ancestral lands as defined in RA No. 8371
purpose in accordance with law.
(IPRA) are not part of the lands of the public domain. They are
private and belong to the ICCs/IPs. but it does not classify ancestral
(2) Imperium and dominium
domains and ancestral lands under any of the said four categories.
 Imperium - government authority possessed by the State which is
appropriately embraced in the concept of sovereignty o To classify them as public lands under any one of the four
 Dominium - capacity of the State to own or acquire property classes will render the entire IPRA law a nullity.
o In such capacity, it may provide for the exploitation and o The spirit of the IPRA lies in the distinct concept of
use of lands and other natural resources, including their ancestral domains and ancestral lands. The IPRA
disposition, except as limited by the Constitution. addresses the major problem of the ICCs/IPs which is loss
of land. Land and space are of vital concern in terms of
o Dominium is the foundation of jure regalia.
sheer survival of the ICCs/IPs.
 No public land can be acquired by private persons without any
grant, express or implied, from the government. Accordingly, where
4. The Public Land Act (CA No. 141), historical background.
there is no evidence that property was acquired from the State by
 Act No. 926 - Public Land Act
purchase or grant, or by any other means for the acquisition of
public lands, the property must be held to be of the public domain. o Passed in pursuance of the provision of the Philippine Bill
It is thus indispensable that there be a showing of a title from the of 1902.
State or any other mode of acquisition recognized by law. o Governed the disposition of lands of the public domain.
o It prescribed rules and regulations for the homesteading,
3. Classification of lands of the public domain under the Constitution. selling, and leasing of portions of the public domain of the
 Four categories: Philippine Islands, and prescribed the terms and
o Agricultural conditions to enable persons to perfect their titles to
o Forest or timber public lands in the Islands.
o Mineral lands o It also provided for the “issuance of patents to certain
native settlers upon public lands,” for the establishment
o National parks
of town sites and sale of lots therein, for the completion of
 Only agricultural lands, which may be further classified according imperfect titles, and for the cancellation or confirmation of
to the uses or purposes to which they are destined, may be disposed Spanish concessions and grants in the Islands.”
of in accordance with law.
 Act No. 2874 - superseded Act No. 926 in 1919
 Section 3, Article XII of the Constitution provides:
o Under the Jones Law
AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 15
LAND TITLES REVIEWER 2C 2019 (PART 2)

o It was more comprehensive in scope but limited the o Promulgate rules, regulations and guidelines on the
exploitation of agricultural lands to Filipinos and issuance of licenses, permits, concessions, lease
Americans and citizens of other countries which gave agreements and such other privileges concerning the
Filipinos the same privileges. development, exploration and utilization of the country’s
 CA No. 141 - the present Public Land Act; enacted on 1936 marine, freshwater, and brackish water and over all
o Same as Act No. 2874 aquatic resources of the country and shall continue to
oversee, supervise and police our natural resources; cancel
o Grants of public lands are brought under the operation of
or cause to cancel such privileges upon failure, non-
the Torrens system of registration pursuant to section 103
compliance or violations of any regulation, order, and for
of PD No. 1529.
all other causes which are in furtherance of the
o It remains to this day the existing general law governing conservation of natural resources and supportive of the
the classification and disposition of lands of the public national interest;
domain other than timber and mineral lands.
o Exercise exclusive jurisdiction on the management and
disposition of all lands of the public domain and serve as
5. Differences between the Property Registration Decree and the Public
the sole agency responsible for classification, sub-
Land Act.
classification, surveying and titling of lands in
consultation with appropriate agencies.
 As manager, conservator and overseer of the natural resources of
PD No. 1529, Property Registration CA No. 141, Public Land Act the State, the DENR exercises “supervision and control over
Decree alienable and disposable public lands.” The DENR also exercises
“exclusive jurisdiction on the management and disposition of all
There exists a title which is to be confirmed by The presumption is that the land applied for lands of the public domain.”
the court pertains to the State, and that the occupants  However, the jurisdiction of the DENR over public lands does not
and possessors claim an interest only in the negate the authority of courts of justice to resolve questions of
same by virtue of their imperfect title or possession and their decisions stand in the meantime that the
continuous, open, and notorious possession. DENR itself has not settled the respective rights of public land
claimants.
The court may dismiss the application of the The court has jurisdiction or power to o But once the DENR has decided, particularly with the
applicant with or without prejudice to the right adjudicate land in favor of any of the grant of a public land patent for instance and issuance of
to file a new application for the registration of conflicting claimants. the corresponding certificate of title, its decision prevails.
the same land.  The Public Land Act applies only to lands of the public domain.
The only risk that an applicant runs is to have The applicant runs the risk of losing the land o Secretary of Environment and Natural Resources is the
his application denied. applied for. executive officer charged with carrying out the provisions
of the Act through the Director of Lands who acts under
his immediate control.
Final product is a Torrens title! Still a Torrens title. o Subject to the control of the Secretary of Environment and
Natural Resources, the Director of Lands shall have direct
Vests in the Director of Lands, and ultimately executive control of the survey, classification, lease, sale
the Secretary of the DENR, the authority to or any other form of concession or disposition and
dispose and manage public lands. management of the lands of the public domain, and his
decisions as to questions of fact shall be conclusive when
(1) Specific functions of the DENR Secretary approved by the Secretary of Environment and Natural
 Section 4, Chapter I, Title XIV of the Revised Administrative Code Resources, in the absence of a showing that such decision
of 1987 specifically vests in the DENR the following powers and was rendered in consequence of fraud, imposition, or
functions: mistake, other than error of judgment in estimating the
value or effect of evidence, regardless of whatever or not it
o Exercise supervision and control over forest lands,
is consistent with the preponderance of the evidence, so
alienable and disposable public lands, mineral resources
long as there is some evidence upon which the finding in
and, in the process of exercising such control, impose
question could be made.
appropriate taxes, fees, charges, rentals and any such
form of levy and collect such revenues for the exploration, o the decision of the Director of Lands may be annulled or
development, utilization or gathering of such resources; reviewed in a direct proceeding and not collaterally as

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LAND TITLES REVIEWER 2C 2019 (PART 2)

when the issue involves a question of law or is based upon  Perform other functions as may be assigned by the Secretary
a misconstruction of the law, or when the conclusions and/or provided by law
drawn by the Secretary from the facts found are o DENR
erroneous or not warranted by law.  Regional offices of Bureau of Forest Development, Bureau of
Mines and Geo-Sciences and Bureau of Lands integrated into
(2) Reorganization of the DENR under EO No. 192 the DENR
 On June 10, 1987, EO No. 192 was issued reorganizing the  Headed by Regional Executive Director
Department of Environment, Energy and Natural Resources and  Assisted by 5 Regional Technical Directors
renaming it as the Department of Environment and Natural o DENR Secretary
Resources.  Approves appraisal of public lands
 Powers and functions:  Issues authority to conduct bidding of agricultural land sales
o to exercise supervision and control over forest lands, above 5 hectares and leases 100 hectares and above
alienable and disposable lands  Approves public land applications or deeds of sale/mortgage of
patented lands above public lands
o under- take geological surveys of the whole country
 Signs patents
including its territorial waters
 For Sales: areas must be more than 5 hectares
o establish policies and implement programs for the  For Homestead and Free patents: areas must be
accelerated inventory, surveys and classification of lands, more than 10 hectares
forest and mineral resources, exercise exclusive  Regional Executive Director
jurisdiction over the management and disposition of all  Issues bidding and signs contracts for cadastral and
lands of the public domain public land subdivision survey projects
o continue to be the sole agency responsible for the  Issues investigation orders involving patented lots
classification, sub-classification, surveying and titling of  Decides claims and conflicts involving public lands
lands  Issues orders of execution
(3) Specific functions of the LMB Director and other officers  Signs patents and reconstituted areas up to 5-10
hectares for homestead and free patent
 Land Management Bureau  Issues original revocable or provisional permits for
o Absorbed the functions and powers of the Bureau of Lands, except line alienable and disposable lands
functions and powers transferred to regional field offices  Regional Technical Director
o Headed by a Director  Verifies, approves and signs maps and plans for
o Assisted by an Assistant Director public land subdivision, cadastral and isolated
o Functions surveys
 Recommend policies and programs for efficient and effective  Approves survey plans for OLT and other agrarian
administration, surveys, management and disposition of reform projects
alienable and disposable lands of the public domain and other  Verifies and approves political boundary surveys
lands outside the responsibilities of other government agencies  Issues survey orders for public land subdivision and
(reclaimed areas/other areas not needed for or are not being cadastral survey covering land up to 500 hectares
utilized for the purposes for which they have been established  PENRO Officer
 Advise Regional Offices on efficient and effective  Approves appraisal of public lands
implementation of policies, programs and pockets for more  Issues authority to conduct bidding on sales and
effective public lands management leases (max. 1000 sqm.) for commercial, industrial
 Assist in the monitoring and evaluation of land surveys, and residential purposes
management and disposition of lands to ensure efficiency and  Approves appraisal of public lands
effectiveness  Issues authority to conduct bidding covering leases
 Issue standards, guidelines, regulations and orders to enforce below 5 hectares for agricultural purposes
policies for the maximization of land use fund development  Issues orders for investigation involving claims and
 Develop operating standards and procedures to enhance the conflicts over unpatented lots
Bureau’s objectives and functions  Signs patents and reconstituted patents for areas up
 Assist the Secretary as Executive Officer charged with to 5 hectares for homestead and free patent
carrying out the provisions of the Public Land Act (CA 141)  CENRO Officer
who shall have direct executive control of the survey,  Issues survey orders to conduct isolated surveys
classification, lease, sale or any other forms of concessions  Accepts public land applications and processes the
same
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LAND TITLES REVIEWER 2C 2019 (PART 2)

 Conducts oral or sealed bidding for the sale or lease oApplicant must present a copy of the original classification approved by
of public lands the DENR Secretary, certified by the legal custodian of the official
 Issues survey orders for the subdivision of cadastral records
lots for patented and unpatented lands  DENR Memorandum No. 564
o Clarified the issuance of the required certification to prove that land is
(4) PENRO OR CENRO requirements for a valid certification of alienability within the competence and jurisdiction of the CENRO
 DENR Administrative Order No. 20 (DAO No. 20) o If CENRO has certified land as alienable and disposable, it is NOT
o Delineates functions and authorities of the offices within the DENR NECESSARY to submit a certified copy of the original classification
o CENRO issues certificates of land classification status for areas less approved by the DENR Secretary
than 50 hectares
o PENRO issues certificates of land classification status for lands (6) No public land can be acquired except by a grant from the State
covering more than 50 areas  No public land can be acquired by any private persons without any grant, express
o Regional Technical Director, FMS-DENR or implied, from the government
 Issue original and renewal of ordinary minor products (OM)  Indispensable that there be a showing of a title from the state:
permits except rattan o Homestead
 Approves renewal of resaw/mini-sawmill permits o Sales
 Approves renewal of special use permits covering public o Free patent or grant
infrastructure projects over 5 hectares  A person claiming “private rights” must prove that he has complied with the
 Issues renewal of certificates of registration for logs, poles, substantial and procedural requirements of the Public Land Act
piles and lumber dealers o At least 30 years of open, continuous, exclusive and notorious possession
and occupation of agricultural lands of the public domain under a bona
 DAO No. 38 fide claim of acquisition, immediately preceding filing of the application
o Amended DAO No. 20 for free patent
o Retained the authority of CENRO and PENRO in issuing certificates of 7. Classification of government lands.
land classification status (still depending on the number of hectares)  lands of the public domain
o Regional Technical Director (FMS-DENR) o alienable or inalienable
 issues original and renewal of ordinary minor products permits  lands of the private domain
except rattan o land belonging to and owned by the state as a private individual
 issues renewal of certificate of registration for logs, poles and o without being devoted for public use, public service or development of
piles and lumber dealers national wealth
 approves renewal of resaw-mini-sawmill permits  Under the civil code, government lands can be:
 issues public gratuitous permits for 20 to 50 cubic meters o Properties of public dominion
within calamity declared areas for public ingrastructure  Those intended for public use
projects  Those which belong to the state, without being for public use,
 approves original and renewal of special use permits for public but intended for public service
infrastructure projects  Those for the development of national wealth
 Under both DAO’s, the Regional Technical Director, FMS-DENR, has no authority o Patrimonial properties of the state
to issue certificates of land classification.  Other than properties of the public dominion
 Former properties of the public dominion that are no longer
(5) DAO No. 20 (1988), as amended, delineates the regulatory functions and intended for public use or for public service
authorities of the offices within the DENR
 Republic v. T.A.N. properties Inc. 8. Classification of lands under the Public Land Act.
o Not enough for PENRO/CENRO to certify that land is alienable and  President, upon recommendation of DENR Secretary declare what lands are open
disposable. Applicant must establish the following facts because to disposition from time to time
certifications presented are not enough to prove that land is alienable  Section 6 of the Public Land Act classifies public domain into alienable or
and disposable. disposable, timber and mineral lands
o Applicant must prove that DENR Secretary approved the land  Prerogative of executive department and not the courts
classification and released the land of the public domain as alienable o in the absence of classification, land remains as unclassified land in
and disposable consonance with the Regalian doctrine.
o Land subject of the application for registration falls within the approved
area as per verification through PENRO/CENRO survey 9. Only alienable and disposable (A and D) lands may be the subject of disposition.
 A&D lands are part of the patrimonial properties of the State
 State properties available for private ownership
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LAND TITLES REVIEWER 2C 2019 (PART 2)

 There must be a positive act from the government before land may be declassified  Homesteader complied with terms and conditions required to obtain a
from the forest group and converted into alienable or disposable land for patent, he acquires interest therein, and is regarded as the equitable
agricultural or other purposes owner
 Rules on confirmation of imperfect titles do not apply unless and until land  Execution and delivery of patent are ministerial acts of the officer
classified as forest land is released in official proclamation charged with that duty
 If a municipality is cadastrally surveyed, it doesn’t follow that the lands are  Even without a patent, a perfected homestead is a property right,
automatically released as alienable unaffected by the fact that paramount title still belongs to the
 Conversion of property into a fishpond by applicants does not automatically render government
property as alienable and disposable  Mesina v. Sonza
 Submerged lands and foreshore lands part of state’s inalienable natural o once a homestead applicant has complied with all the
resources/property of public dominion conditions essential to a government grant, he acquires not
 Menguito v. Republic only a right to a grant, but a grant of the government
o Unless public land is shown to have been reclassified or alienated to a o not necessary that certificate of title be issued in order for
private person by the State, occupation, no matter how long, cannot grant to be sanctioned by the courts
ripen into ownership and be registered as a title  Nieto v. Quines
10. Classification of public lands open to disposition. o Quines has been in continuous and peaceful possession of lot
 Classification of public lands is the function of the executive branch of the from the time of his homestead application approval in 1918 to
government the time when he was forcibly ejected in 1953
 Prerogative belongs to the President o He complied with all the requirements of the PLA so he was
 He can exercise this through a presidential proclamation or executive order granted a homestead patent
 For purposes of administration and disposition, lands can be further classified to: o He submitted the required proof in 1923.
o Agricultural o There was delay in the ministerial act of issuing the patent. It
o Residential, commercial, industrial, or for similar productive purposes was only issued after cadastral court adjudicated the land to
o Educational, charitable, or other similar purposes Florentino
o Reservations for townsites and for public and quasi-public uses o However, since he complied with the requirements to entitle
11. Modes of disposition. him to a patent, even without a patent actually issued, he has
 Public lands suitable for agricultural purposes can be disposed as follows: acquired a vested right on the land and is regarded as the
o For homestead settlement equitable owner thereof .
o By sale o Quines’ title must prevail over Florentino because he obtained
o By lease title to the land prior to that of Florentino.
o By confirmation of imperfect or incomplete titles  Once homestead patent is registered, certificate of title has force and
 By judicial legalization effect of a Torrens title issued under land registration law.
 By administrative legalization (Free patent)
12. Homestead Patent. 13. Sales patent.
 Homestead settlement is one of the modes by which public lands suitable for
agricultural purposes are disposed (1) Public agricultural lands
 To provide a home for each citizen of the state, where his family may shelter and  Acquisition of public agricultural lands by purchase is governed by Chapter V
live beyond the reach of financial misfortune (Sale) of the Public Land Act.
 Inculcate in individuals feelings of independence which are essential to  Any citizen of the Philippines of lawful age or the head of the family may purchase
maintenance of free institutions any tract of public agricultural land not to exceed 1 hectares which shall be sold
 Chapter IV of the Public land act thru public bidding.
o Governs disposition of alienable public lands through homestead  Land shall be awarded to the highest bidder, but applicant may equal the highest
o Any Filipino citizen over 18/head of the family may enter a homestead bid.
not more than 12 hectares of agricultural land of the public domain  Purchase price may be paid in full upon making of the award or not more than 10
o Applicant must do the following to be entitled to a patentt: equal annual installments from the date of award.
 cultivate and improve at least 1/5 of the land continuously  Required that a purchaser shall have not less than one-fifth of the land cultivated
since approval of the application within five (5) years from the date of the award, and before any patent is issued.
 reside in at least 1 year in the municipality in which land is  He must show actual occupancy, cultivation and improvement of at least one-fifth
located or adjacent to of the land until the date of final payment.
 pay required fee  Approval of the sale merely authorizes the applicant to take possession of the land
(1) Effect of compliance with legal requirements so that he could comply with the requirements prescribed by law before a final
patent could be issued in his favor.
 Issuance and subsequent registration with the Register of Deeds of a sales patent
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LAND TITLES REVIEWER 2C 2019 (PART 2)

divests the government of title to the land.  who shall have paid the real estate tax thereon while the same has not been
occupied by any person shall be entitled to have a free patent issued to him for
(2) Lands for residential, commercial or industrial purposes such tract not to exceed 12 hectares.
 Lands are classified as:  A Torrens title issued on the basis of a free patent becomes as indefeasible as one
a) Lands reclaimed by the government by dredging, filling, or other means; which was judicially secured upon the expiration of one (1) year from the date of
b) Foreshore; issuance of the patent.
c) Marshy lands or lands covered with water bordering upon the shores or 15. RA No. 10023, dated March 9, 2010, authorizes issuance of free patent titles to
banks of navigable lakes or rivers; residential lands.
d) Lands not included in any of the foregoing cases.  Now provides for the disposition of residential lands by means of a free patent.
 Lands comprised in a) and b) shall be disposed by lease only.  Prior to this law, only agricultural lands may the subject matter of disposition of
 Lands in c) and d) may be sold on condition that the purchaser shall make free patents.
improvements of a permanent character appropriate for the purpose for which the
land is purchased within 18 months from the date of the award. (a) Qualifications
 General rule: Lease or sale shall be made through oral bidding.  Any Filipino citizen who is an actual occupant of a residential land;
 Adjudication shall be made to the highest bidder.  Subject to the following (maximum) area limitations:
 Exception: if applicant has made improvements on the land by virtue of a permit (1) Highly urbanized 200 square meters
issued to him, the sale or lease shall be made by sealed bidding. (2) Other cities 500 square meters
(3) Municipalities (1st and 2nd class) 750 square meters
(3) Lands for residential purposes (direct sale) (4) All other municipalities 1,000 square meters
 RA730 permits the direct sale of public lands for residential purposes.
 Qualifications for the applicant: (b) Coverage
a) Filipino citizen of legal age;  All lands that are zones as residential areas, including townsites.
b) Not the owner of a home lot in the municipality or city in which he  Zoned residential areas located inside a delisted military reservation or
resides; abandoned military camp, and those of LGUs or townsites which preceded RA No.
c) Have established in good faith his residence on a parcel of public land 7586.
which is not intended for public service;
d) Have constructed his house and actually resided therein. (c) Application
 Compliance with the conditions will give preference to purchase at a private sale  Must be supported by a survey plan approved by the Department of Environment
not more than 1,000 square meters of land at a price fixed by the Director of and Natural Resources (DENR);
Lands.  and the corresponding technical description;
 Private sale without bidding is allowed provided the are applied for does not  Affidavits of two (2) disinterested persons who are residents of the barangay or
exceed 1,000 square meters. city or municipality where the land is located;
 Applicant or his predecessors-in-interest must have actually resided on, and
(4) Lands within military reservations actually possessed and occupied the land applied for under a bona fide claim od
 When declared by the President as no longer needed for military purposes, may be acquisition of ownership, for at least 10 years, and has complied with the other
subdivided by the Director of Lands, thereafter sold to persons qualified to acquire requirement prescribed by the Act.
public lands.
 Priority is given to bona fide occupants and the to war veterans. (d) Special patents
 Public lands occupied and used for public schools, municipal halls, public plazas or
(5) Lands for educational, charitable and other similar purposes parks and other government institutions for public use or purpose may be issued
 May be sold or leased, under the same conditions as the sale or lease of special patents in the name of the national agency or LGU concerned.
agricultural public lands, for the purpose of founding a cemetery, church, college,  There must be an approval of Congress if owned by the national agency;
school, university, or other institutions for educational, charitable, or  There must be an approval by the sanggunian concerned through an approved
philantrophical purposes or scientific research. ordinance if owned by the LGU.
 Secretary of Environment and Natural Resources may order the sale to be made
without pubic auction, at a price fixed by him. (e) Removal of restrictions
 Restrictions regarding encumbrances, conveyances, transfers or dispositions under
14. Free patent. Sections 118, 119, 121, 122 and 123 of Chapter XIII, Title VI of CA No. 141, as
 Any natural-born citizen of the Philippines who is not the owner of more than 12 amended, shall not apply to patents under the Act.
hectares;
 and who, for at least 30 years prior to the effectivity of this Act, has continuously (f) Period for application
occupied and cultivated, either by himself or through his predecessors-in-interest  Application shall be filed with the CENRO of DENR.
a tract or tracts of agricultural public lands subject to disposition;  CENRO shall process the application within 120 days and ensure compliance with
AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 20
LAND TITLES REVIEWER 2C 2019 (PART 2)

the required notices and other legal requirements. of Lands) under the provisions of this act shall be valid until approved by the
 CENRO shall then forward his recommendations to the PENRO who shall within Secretary of the Interior (Now the Secretary of Natural Resources)
five days approve or disapprove the grant of patent.  Dissents:
 If there are conflicting claims, the parties may resort to judicial action.  Justice Carpio: the Manotoks became owners of the land upon full payment of
the purchase price to the government, hence they had the right to demand
16. Reservations conveyance of the land and issuance of the corresponding title to them since “it is
 Upon recommendation of the Secretary of Environment and Natural Resources, only ministerial on the part of the Secretary of Natural Resources to sign the Deed
the President may designate by proclamation any tract or tracts of land of the of Conveyance once the full payment of the purchase price has already been
public domain as reservations for the use of the Republic of the Philippines or of made.”
any of its branches, or of the inhabitant thereof, in accordance with regulations  Justice Carpio-Morales: The Department Secretary’s signature on the
prescribed for this purpose, or for quasi-public uses for purposes when the public certificate of sale is not one of the requirements for the issuance of the Deed of
interest requires it. Conveyance under Act No. 1120. To require such is to impose a redundant
 A certified copy of every proclamation of the President issued under the provisions requirement and render irrelevant the spirit of the order
of this title shall be forwarded to the Director of Lands for record in his office, and  Justice Sereno: By introducing a stale, formalistic technical requirement into
a copy of this records shall be forwarded to the Register of Deeds of the province or the system of acquisition of friar lands that trumps satisfaction of all other lawful,
city where the land lies. effective possession and ownership thereof, created dangers for the system of
 Director of Lands shall order the immediate survey of the proposed reservation if property rights in the Philippines.
the land has not yet been surveyed.
(3) Sale of friar lands different from sale of public lands
17. Special patents  In the case of public lands, a person who desires to acquire must first apply for the
 A patent to grant, cede, and convey full ownership of alienable and disposable parcel of land desired. The land is thereafter opened for bidding and shall be
lands formerly covered by a reservation or lands of the public domain, and is awarded to a qualified bidder, granting him a right of entry to occupy the land and
issued upon the promulgation of a special law or act of Congress or by the cultivate and improve it. It is only after satisfying the requirements of cultivation
Secretary of Environment and Natural Resources as authorized by an Executive and improvement of 1/5 of the land that the applicant is given a sales patent
Order of the President.  In the case of friar lands, the purchaser becomes the owner upon issuance of the
certificate of sale in his favour, subject only to cancellation if price is not paid.
18. Friar lands, generally
 Are not public lands, but private or patrimonial property of the government. 19. Foreshore lands, submerged areas and reclaimed areas
 Friar lands were purchased by the government for sale to actual settlers and  These are inalienable unless converted by law into alienable and disposable lands of
occupants at the time said lands were acquired by the government. public domain.
 The Land Management Bureau shall first issue a certificate stating therein that  Foreshore land – a strip of land that lies between the high and low water marks and
the government has agreed to sell the land to such settler or occupant. that is alternately wet and dry according to the flow of the tide.
(1) Case of Republic v Court of Appeals and Republic Real Estate Corporation
(1) Ownership transferred to buyer upon the execution of certificate of sale
 The conveyance executed in favor of a buyer or purchaser, or the so called - Pasay City and Republic Real Estate Corporation (RREC)entered into an
certificate of sale, is a conveyance of the ownership of the property, subject only agreement for the reclamation of foreshore lands in Pasay City, pursuant to
the resolutory condition that the sale may be cancelled if the price agreed upon is RA No. 1899 authorizing chartered cities to reclaim foreshore lands.
not paid in full. - Republic of the Philippines filed a complaint for recovery of possession with
 The purchaser is considered by law as the actual owner of the lot purchased, damages on grounds that the subject lands were out of commerce of men –
under the obligation to pay in full the purchase price, the role or position of the they were offshore areas, not foreshore lands, and that the terms of the sale
government being that of a mere lien holder or mortgagee. were violative of RA 1899
 The beneficial and equitable title is in the purchaser. - The supreme court held that the reclamation project undertaken by Pasay
 Director of Lands v. Rizal: the equitable and beneficial title really goes to the City and RREC violated RA 1899 since the subject properties were
purchaser the moment he pays the first installment and is given a certificate of submerged or offshore lands, not foreshore lands which are the only lands
sale. that may be reclaimed under the said law.
 The moment the first installment is paid and a certificate if sale is issued.
 Friar lands are surveyed before they are sold. (2) Case of Chavez v Public Estates Authority
 The purchaser buys a definite parcel with fixed boundaries, at an agreed price. - Petitioners sought to nullify the joint venture agreement (JVA) between PEA
 The purchaser must receive the increase or suffer the loss or decrease. and the Amari Coastal Bay and Development Corporation (AMARI) to
reclaim portions of the Manila Bay.
(2) Sale or lease not valid until approved by DENR Secretary - The threshold issue is whether or not AMARI a private corporation, may
 Manotok v Barque Section 18 of Act No. 1120, or the Friar Lands At provides acquire and own the reclaimed foreshore and submerged areas in Manila Bay
that no lease or sale made by the chief of Bureau of Public Lands (now the Bureau in view of sections 2 and 3, Article XII of the 1987 Constitution.
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LAND TITLES REVIEWER 2C 2019 (PART 2)

- The Supreme Court ruled that the JVA violates the constitution, that section  The indefeasibility of certificate of title shall not be a bar to an investigation by the
2, Article XII of the constitution provides that foreshore and submerged areas state as to how such title has been acquired, if the purpose of the investigation is to
are part of the lands of public domain and are consequently owned by the find out whether or not fraud has been employed in securing the title.
state. They shall not be alienated unless they are classified as agricultural  The Director of Lands is the officer charged with carrying out the provisions of the
lands of the public domain. The reclamation by itself does not convert these Public Land Law, has control over the survey, classification, lease, sale or any other
inalienable natural resources of the State into alienable and disposable lands form of concession or disposition and management of lands of public domain. His
of the public domain. decision, when approved by the Secretary of Natural Resources, is conclusive.
- Under section 3 of the same article, private corporations or associations may  Courts have no jurisdiction to intrude upon matters properly falling within the powers
not hold such alienable lands of public domain except by lease. of the Director of Lands (Lands Management Bureau)

20. The Public Estate Authority, now Philippine Reclamation Authority 25. Only the government may initiate an action for cancellation of title and
 The Philippine Reclamation Authority was established to provide for a coordinated reversion
reclamation of lands and the administration and operation of lands belonging o,  Notwithstanding indefeasibility of the certificate of title, Section 101 of the Public Land
managed and/or operated by the government, with the object of maximizing their Act provides a remedy whereby lands of public domain fraudulently awarded to the
utilization. applicant may be recorded or reverted back to its original owner, the government. An
 It is empowered to exercise the right of eminent domain in the name of the Republic of action for reversion must be instituted by the Solicitor General.
the Philippines.  The Solicitor General shall represent the government in all land registration and
related proceedings .
21. Vested rights, defined  Sumail v. Judge of CFI:
 A vested right is some right or interest in property that has become fixed and  Only the Solicitor General or the officer acting in his stead may bring the
established, and is no longer open to doubt or controversy. action for reversion. Consequently, Sumail may not bring such action or any
 Rights are vested when the right to enjoyment, present or prospective, has become the action which would have the effect of cancelling a free patent and the
property of some person as present interest. corresponding certificate of title issued on the basis thereof, with the result
that the land covered thereby will again form part of the public domain.
22. Option of the claimant to file free patent application or obtain judicial  Furthermore, there is another reason for withholding legal personality from
confirmation of title Sumail. He does not claim the land to be his private property. In fact, by his
 Where the applicants claimed that they acquire ownership of the properties in question application for a free patent, he had formally acknowledged and recognized
partly by inheritance and by purchase, they could opt to file a free patent application the land to be a part of the public domain; this, aside from the declaration
therefor or a judicial confirmation of their imperfect title. The Supreme Court made by the cadastral court that lot 3633 was public land. Consequently,
enunciated that insofar a the kind of land that may be subject of one or the other even if the parcel were declared reverted to the public domain, Sumail does
remedy is concerned, there is no difference between them. Both are mode of confirming not automatically become owner thereof. He is a mere public land applicant
an imperfect or incomplete title- one administratively and the other judicially. like others who might apply for the same.”
 Nagaño v. Director of Land:
23. Registration of patent is the operative act to convey the land
 Plaintiffs filed a complaint for the declaration of nullity of a certificate of title
 A public land conveyed by the government shall also be brought forthwith under the
issued to defendants on the basis of a free patent. Plaintiffs alleged that
operation of the Property Registration Decree. The same shall also be filed and
defendants obtained their title through fraud since plaintiffs, and no other
registered under the Registry of Deeds. The patent shall not take effect as a
persons, have always been in possession of the land since 1950. Defendant
conveyance and bind the land, but shall operate only as a contract between the
filed a motion to dismiss alleging that the court has no jurisdiction over the
government and the applicant without the act of registration.
nature of the action; plaintiffs have no cause of action since the suit for
(1) Certificate of title issued pursuant to a patent indefeasible
annulment should be instituted by the Solicitor General; and plaintiffs’ cause
A public land patent when registered in the corresponding Registry of Deeds is a
of action is barred by the statute of limitations, the lawsuit having been
veritable Torrens Title and becomes as indefeasible as the latter upon the expiration of
instituted more than one year, or in fact almost fifteen years after the
one year from the date of its issuance.
issuance of the title. The Court said that the complaint of private respondents
Prescription cannot operate against the registered owner.
may be considered an action for quieting of title. Private respondents’ claim of
(2) Title cannot be defeated by adverse possession
open, public, peaceful, continuous and adverse possession of the 2,250 square
The certificate of title cannot be defeated by adverse, open, and notorious possession.
meter portion since 1920, and its illegal inclusion in the free patent of
Neither can it be defeated by prescription
petitioners and in their original certificate of title, gave private respondents a
A public land patent, when in conflict with one obtained on the same date through
cause of action for quieting of title which is imprescriptible. It is settled that a
judicial proceedings (certificate of title), the former must give way to the latter.
free patent issued over private land is null and void, and produces no legal
24. Director of Lands has continuing authority to investigate fraudulent issuance
effects whatsoever. The facts do not bring out a case for reversion to be
of patents
instituted by the Solicitor General.
 Private parties cannot challenge the validity of the patent and title when

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LAND TITLES REVIEWER 2C 2019 (PART 2)

they are not the registered owners thereof nor had they been declared as wrongfully deprived of such land may, notwithstanding the lapse of the one-year
owners in the cadastral proceedings. The reason for the rule is explained in period, bring an action for the recovery thereof, and “the court, in the exercise of
Maninang v. Consolacion: “Whether the grant was in conformity with the its equity jurisdiction, without ordering the cancellation of the Torrens title issued
law or not is a question which the government may raise, but until it is raised upon the patent, may direct the defendant, the registered owner, to reconvey the
by the government and set aside, the defendant can not question it. The parcel of land to the plaintiff who has been found to be the true owner thereof.
legality of the grant is a question between the grantee and the government.”  The case of Quiñiano v. Court of Appeals, where patent and title were obtained
 Republic v. Umali: the government sought the reversion of a parcel of land over a parcel of land belonging to private owners, reiterated the legal norm
on the ground that the original sale thereof from the government was based enunciated in Director of Lands v. Register of Deeds of Rizal that: “The sole
on a forgery and therefore void ab initio. Respondents as transferees, remedy of the landowner whose property has been wrongfully or erroneously
claiming to be innocent purchasers for value and not privy to the alleged registered in another’s name is after one year from the date of the decree, not to
forgery, contended that the action cannot lie against them as they were not set aside the decree . . . but, respecting the decree as incontrovertible and no
privy to the alleged forgery. Upholding such claim, the Supreme Court held longer open to review, to bring an ordinary action in the ordinary court of justice
that even if the original grantee is proven to have procured the patent and for reconveyance or, if the property has passed into the hands of an innocent
the original certificate of title by means of fraud, the land would not revert purchaser for value, for damages.”
back to the State precisely because it has become private land. Respondents 26. Courts have jurisdiction over possessory actions involving public lands.
are transferees in good faith and for value and that the original acquisition  Even pending the investigation of, and resolution on, an application by a bona fide
thereof, although fraudulent, did not affect their own titles occupant, by the priority of his application and record of his entry, he acquires a
right to the possession of the public land he applied for against any other public
(1) Private parties cannot bring action for reversion. land applicant, which right may be protected by the possessory action of forcible
 If there has been any fraud or misrepresentation in obtaining the title, an action entry or by any other suitable remedy that our rules provide.
for reversion instituted by the Solicitor General would be the proper remedy. But  The grant of power and duty to the Department of Environment and Natural
an action for reversion may be filed by the Solicitor General only upon the Resources (DENR), through the Lands Management Bureau (LMB), to alienate
recommendation of the Director of Lands and dispose of public lands does not divest the courts of their duty or power to take
 A private party may not bring an action for reversion or any action which would cognizance of actions instituted by settlers or occupants or applicants against
have the effect of cancelling a public land patent and the corresponding certificate others to protect their respective possessions and occupations, more especially the
of title, with the result that the land covered thereby will again form part of the actions of trespass, forcible entry and unlawful detainer. The exercise of such
public domain. jurisdiction is not considered as an interference with the alienation, disposition,
 This is especially true where that party does not claim the land to be his private and control of public lands.
property as when, for instance, he has filed an application for free patent for the  The DENR’s jurisdiction over public lands does not negate the authority of courts
land, thereby formally acknowledging and recognizing the land to be a part of the of justice to resolve questions of possession and their decisions stand in the
public domain. Consequently, even if the parcel were declared reverted to the meantime that the DENR has not settled the respective rights of public land
public domain, that party does not automatically become owner thereof. He is a claimants.But once the DENR has decided, particularly with the grant of the
mere public land applicant like others who might apply for the same. corresponding homestead and title, its decision prevails

(2) Action for reversion not barred by prescription 27. Prohibition against alienation of lands acquired under the homestead and free
 Public land fraudulently included in patents or certificates of title may be patent provisions.
recovered or reverted to the State in accordance with Section 101 of the Public
Land Act. Prescription does not lie against the State in such cases for the Statute (1) Land acquired under a homestead or free patent not subject to alienation or
of Limitations does not run against the State. The right of reversion or encumbrance
reconveyance to the State is not barred by prescription.  The law proscribes the encumbrance of a parcel of land acquired under a free
(3) Complaint for reversion does not preclude action for expropriation patent or homestead within five years from the grant of such patent. Furthermore,
 The filing of complaint for reversion does not preclude the institution of action for such encumbrance results in the cancellation of the grant and the reversion of the
expropriation. Even if the land is reverted abck to the state, the same may be land to the public domain.
subject to expropriation against the occupants thereof.  The grantee’s right to enjoy the property is restricted when it is leased — hence,
(4) Action for cancellation of title encumbered — to another during the five-year prohibitory period. The contract of
 It is proper for a private party to file an action for cancellation of certificate title lease “impairs the use of the property” because the owner temporarily grants the
issued by virtue of a public land patent as when he claims ownership of the land use of his property to another who undertakes to pay rent therefor. During the
as private property by virtue of long period of possession and, hence, no longer term of the lease, the grantee of the patent cannot enjoy the beneficial use of the
deemed a part of the public domain which could be disposed of under the land leased.
provisions of the Public Land Act, or when the land is already covered by a  As already observed, the Public Land Act does not permit a grantee of a free
previously issued certificate of title. patent from encumbering any portion of such land. Such encumbrance is a ground
 Thus, it has been held that where the land awarded by virtue of patent was not for the nullification of the award. In the same vein, a mortgage constitutes a legal
part of the public domain but was private property, the owner who has been limitation on the estate and the foreclosure of such mortgage would necessarily
AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 23
LAND TITLES REVIEWER 2C 2019 (PART 2)

result in the auction of the property.  Sec. 119 of the Public Land Act provides that every conveyance of land acquired
 Even if only part of the property has been sold or alienated within the prohibited under the free patent or homestead provisions, when proper, shall be subject to
period of five years from the issuance of the patent, such alienation is a sufficient repurchase by the applicant, his widow, or legal heirs, within a period of 5 years
cause for the reversion of the whole estate to the State. from the date of the conveyance
(2) Policy behind prohibition
 Prohibition against the encumbrance (lease and mortgage included) of a (1) Rational of the provision
homestead applies to a free patent:  To give the homesteader or patentee the chance to preserve for himself and
o Homestead laws were designed to distribute disposable agricultural lots his family the land the state had gratuitously given to him as a reward for his
of the State to land-destitute citizens for their home and cultivation labor in cleaning and cultivating it
o Prohibition aims to preserve and keep in the family of the homesteader  Right to repurchase attaches to every alienation or encumbrance, and that
that portion of public land which the State had gratuitously given to him right can be exercised even in the absence of any stipulation in the deed of
 Tinio v. Frances: the legislative policy or intent is to conserve the land which a sale
grantee has acquired under the Public Land Act, for him and his heirs  Right to repurchase cannot be waived
 Beniga v. Bugas: to give the patentee a place where to live with his family so he  Where the purchaser against whom the right to repurchase asserted by a
may become a happy citizen and a useful member of our society daughter is a son of the homesteader himself, right cannot prosper because
 Metropolitan Bank and Trust Co. v. Viray: the policy of the state is to foster the redemption does not fall within the purpose, spirit, and meaning of the
families as the foundation of society, and thus promote general welfare provision
 The legislative policy is so strong and consistent that the original period of 5  Also, where the intention in exercising the right to repurchase is for the
years from the issuance of the patent, within which period conveyance or sale speculative purpose of redeeming the land only to dispose of it again for
thereof by the homesteader or his heirs was prohibited is now extended to 25 greater profit, this has been held to be in violation of the policy and spirit of
years if no approval of the Secretary of the DENR is secured (HOMESTEAD.) the law
 Any act which would have the effect of removing the property subject of the patent  The principle of conclusiveness of title, though sound, as applied to lands
from the hands of a grantee will be struck down for being violative of the law registered through judicial proceedings, cannot defeat the express policy of
the State which prohibits the alienation or encumbrance of lands of the public
(3) Prohibition starts from date of approval up to fifth year from issuance of domain acquired under the provisions of the Public Land Act within 5 years
patent from and after the date of the patent
 Beniga v. Bugas: a free patent was issued to the patentee on May 6, 1963. The
patentee died on September 5, 1966. Before his death, he donated inter vivos on (2) Period of repurchase under Section 119
September 22, 1965 the controverted portion of the parcel of land to the defendant.  5-year period for legal redemption starts from the date of the execution of the
At the time of donation, both donor and done did not know about the issuance of deed of sale, and not from the date of registration in the Register of Deeds
the patent. Court held that the donation was null and void.  This is true even if full payment of purchase price is not made on the date of
 The prohibition is a proviso attached to the approval of every application; prior to conveyance, unless there is a stipulation in the deed that ownership shall not
the fulfillment of all requirements of the law, his title over the property is vest until full payment
incomplete  Redemption of extrajudicially foreclosed properties is exercisable within 1
 The patent is considered issued once the order for its issuance is promulgated year from the date of the auction sale as provided for in Act No. 3135

(4) Approval of Secretary merely directory (3) Rule when homestead is the subject of mortgage
 The Secretary is required to approve the alienation unless there are  Period of redemption begins to run from the day after the expiration of the 1-
“constitutional and legal grounds” to deny the approval year period of repurchase allowed in an extrajudicial foreclosure
 Alfredo v. Borras: failure to secure the approval of the Secretary does not ipso
facto make the sale void; approval may be secured later, producing the effect of (4) Rule in case of mortgage to a rural bank
ratifying and adopting the transaction as if the sale had been previously  Under RA No. 720, as amended, the mortgagor may redeem the property
authorized within 2 years from the date of foreclosure if the property is not covered by a
Torrens title; if it is covered by a Torrens title—from the registration of the
(5) Agreements which are considered a circumvention of the law sheriff’s certificate of sale at such foreclosure
 Prohibition applies to the sale of the land to the homesteader’s own son or  If mortgagor fails to exercise such right, he or his heirs may still repurchase
daughter (who might sell it to a third person) the property within 5 years from the expiration of the 2-year period pursuant
 Manzano v. Ocampo: prohibition does not distinguish between executor and to Sec. 119 of the Public Land Act
consummated sales; a homestead (or patent) sale actually perfected during the
period of prohibition but with the execution of the formal deed of conveyance and (5) Repurchase may be barred by laces
the delivery deferred until after expiration of 5-year period— STILL VOID!  Prohibition against the sale of lands covered by free patents is for a period of
5 years “from the date of the issuance of patent” and after that period, a
28. Repurchase by applicant or his heirs patentee would be free to dispose of the land.
AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 24
LAND TITLES REVIEWER 2C 2019 (PART 2)

 rule is that the right to repurchase may not be waived, a patentee or his heirs  Arsenal v. IAC: where the homestead has been the subject of void
may however lose that right by virtue of laches. conveyances, the law still regards the original owner as the rightful owner
 Go Chi Gun v. Co Cho: subject to escheat proceedings by the State
o Elements of Laches:  The provision of the law which prohibits the sale or encumbrance of the
1. Conduct on the part of the defendant, or of one under whom he homestead within five years after the grant of the patent is mandatory. This
claims, giving rise to the situation of which complaint is made cannot be obviated even if official approval is granted beyond the expiration
and for which the complaint seeks a remedy of that period,
2. Delay in asserting the complainant’s rights, the complainant o Purpose of the law: to promote a definite public policy, which is ‘to
having had knowledge or notice, of the defendant’s conduct and preserve and keep in the family of the homesteader that portion of
having been afforded an opportunity to institute a suit public land which the State has gratuitously given to him.’”
3. Lack of knowledge or notice on the part of the defendant that
the complainant would assert the right on which he bases his
suit
4. Injury or prejudice to the defendant in the event relief is
accorded to the complainant, or the suit is not held to be
barred. (7) A homestead is exempt from CARP coverage
 Lucas v. Gamponia: Where land acquired under a free patent was sold only
11 days after the issuance of the patent, but the original patentee or his heirs (8) Rule of pari delicto not applicable
did not bring an action to repurchase the land until after 37 years from the  De los Santos v. Roman Catholic Church of Midsayap: the Court
sale, it was held that the equitable defense of laches barred the action. rejected the argument that the heirs of the patentee may not maintain an
o “The reason upon which the rule is based is not alone the lapse of action for the nullification of the void conveyance, firstly, because it is the
time during which the neglect to enforce the right has existed, but government which is the proper party, and secondly, the action is barred by
the changes of condition which may have arisen during the period the principle of pari delicto.
in which there has been neglect. In other words, where a court of o Because the subject of the transaction is a piece of public land,
equity finds that the position of the parties has to change that public policy requires that (the heirs of the patentee) be not
equitable relief cannot be afforded without doing injustice, or that prevented from re-acquiring it because it was given by law to his
the intervening rights of third persons may be destroyed or family for his home and cultivation. This is the policy on which our
seriously impaired, it will not exert its equitable powers in order to homestead law is predicated. This right cannot be waived. ‘It is not
save one from the consequences of his own neglect.” within the competence of any citizen to barter away what public
policy by law seeks to preserve.
(6) Effect of a void conveyance  Castro v. Orpiano: “Whether as the result of the void sale the land reverted
 Section 124 provides that any acquisition, conveyance, alienation, transfer, or to the State is a point which we do not have, and do not propose, to decide.
other contract made or executed in violation of any of the provisions of That is a matter between the State and the grantee of the homestead or his
sections 118, 120, 121, 122 and 123 of this Act shall be unlawful and null and heirs. x x x In any event, the plaintiff’s right to the possession and use of the
void from its execution. property can hardly be disputed while the government does not take steps to
 shall produce the effect of annulling and cancelling the grant, title, patent, or assert its title to the homestead. Possession as well as ownership is a
permit originally issued, recognized or confirmed, actually or presumptively, property right transmitted by operation of law to the distributees, whoever
and cause the reversion of the property and its improvements to the State. they may be of decedent’s estate, and the heirs’ right to the possession is
 GR: Where the parties to a sale of a portion of the public domain covered by unquestionably superior to any of the purchaser’s in the void sale. Upon the
homestead patent have been proven to be guilty of having effected the annulment of the sale, the purchaser’s claim is reduced to the purchase price
transaction with knowledge of the cause of its invalidity, the sale is null and and its interest. As against the vendor or his heirs, the purchaser is no more
void and shall cause the reversion of the property to the State. entitled to keep the land than any intruder.”
o E: where its enforcement or application will run counter to an  EXCEPTION TO PARI DELICTO RULE: when the contract is merely
avowed fundamental policy of public interest – ex. subject of the prohibited by law, not illegal per se, and the prohibition is designed for the
transaction is a piece of public land, an heir should not be protection of the party seeking to recover, he is entitled to the relived prayed
prevented from reacquiring it because it was given by law to her for whenever public policy is enhanced thereby
family for her home and cultivation and this is the policy on which o Where the sale by the patentee was made during the prohibited
the homestead law is predicated. period, he may still recover the portion sold since the prohibition
 While the government (the proper party to institute an action for the was imposed in favor of the patentee
reversion of the property subject of a void sale), does not take steps to assert  The sale of a homestead within the prohibitory period is unlawful and null
its title to the homestead, the vendees should not be allowed to remain in it and void from its execution by express provision of law.
because their right to its possession is no better than that of the vendor or his o The contract of sale is inexistent and “the action or defense for
heirs. declaration” of such inexistence does not prescribe.
AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 25
LAND TITLES REVIEWER 2C 2019 (PART 2)

o it is generally considered that as between the parties to a contract,


validity cannot be given to it by estoppel if it is prohibited by law or
is against public policy.
o reversion is not automatic, and so long as the government has not
chosen to act, the rights of the patentee stand and must be
recognized in the courts of law.

AGCAOILI NOTES BY: BAQUILOD. BORROMEO. EVANGELISTA. GAITE. GO. GUERRERO. NARCISO. PEREZ. PUERTO. N. SANTOS. TORRES. YAP. 26

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